Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2019 | Nov. 05, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Novelis Inc. | |
Entity Central Index Key | 0001304280 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,851 | $ 3,136 | $ 5,776 | $ 6,233 |
Cost of goods sold (exclusive of depreciation and amortization) | 2,348 | 2,657 | 4,762 | 5,248 |
Selling, general and administrative expenses | 122 | 127 | 249 | 244 |
Depreciation and amortization | 88 | 86 | 176 | 172 |
Interest expense and amortization of debt issuance costs | 61 | 68 | 126 | 134 |
Research and development expenses | 18 | 17 | 37 | 32 |
Restructuring and impairment, net | 32 | 0 | 33 | 1 |
Equity in net (income) loss of non-consolidated affiliates | 0 | 1 | 0 | 1 |
Other (income) expenses, net | 2 | (6) | 6 | 23 |
Business acquisition and other integration related costs | 12 | 8 | 29 | 10 |
Total expenses | 2,683 | 2,956 | 5,418 | 5,863 |
Income before income taxes | 168 | 180 | 358 | 370 |
Income tax provision | 45 | 64 | 108 | 117 |
Net income | 123 | 116 | 250 | 253 |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to our common shareholder | $ 123 | $ 116 | $ 250 | $ 253 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 123 | $ 116 | $ 250 | $ 253 |
Other comprehensive income (loss): | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (86) | (1) | (81) | (118) |
Net change in fair value of effective portion of cash flow hedges | (36) | 11 | 16 | 57 |
Net change in pension and other benefits | 18 | 10 | 26 | 28 |
Other comprehensive income (loss) before income tax effect | (104) | 20 | (71) | (147) |
Income tax provision (benefit) related to items of other comprehensive income (loss) | (5) | 5 | 3 | (9) |
Other comprehensive income (loss), net of tax | (99) | 15 | (74) | (138) |
Comprehensive income | 24 | 131 | 176 | 115 |
Less: Comprehensive income attributable to noncontrolling interest, net of tax | 1 | 1 | 3 | 1 |
Comprehensive income attributable to our common shareholder | $ 23 | $ 130 | $ 173 | $ 114 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 935 | $ 950 |
Accounts receivable, net | ||
— third parties (net of allowance for uncollectible accounts of $7 as of September 30, 2019 and March 31, 2019, respectively) | 1,329 | 1,417 |
— related parties | 159 | 164 |
Inventories | 1,454 | 1,460 |
Prepaid expenses and other current assets | 122 | 121 |
Fair value of derivative instruments | 101 | 70 |
Assets held for sale | 5 | 3 |
Total current assets | 4,105 | 4,185 |
Property, plant and equipment, net | 3,435 | 3,385 |
Goodwill | 607 | 607 |
Intangible assets, net | 323 | 351 |
Investment in and advances to non–consolidated affiliates | 768 | 792 |
Deferred income tax assets | 136 | 142 |
Other long–term assets | 203 | 101 |
Total assets | 9,577 | 9,563 |
Current liabilities | ||
Current portion of long–term debt | 19 | 19 |
Short–term borrowings | 14 | 39 |
Accounts payable | ||
— third parties | 1,827 | 1,986 |
— related parties | 202 | 175 |
Fair value of derivative instruments | 102 | 87 |
Accrued expenses and other current liabilities | 532 | 616 |
Total current liabilities | 2,696 | 2,922 |
Long–term debt, net of current portion | 4,338 | 4,328 |
Deferred income tax liabilities | 248 | 223 |
Accrued postretirement benefits | 811 | 844 |
Other long–term liabilities | 242 | 180 |
Total liabilities | 8,335 | 8,497 |
Commitments and contingencies | ||
Shareholder’s equity | ||
Common stock, no par value; unlimited number of shares authorized; 1,000 shares issued and outstanding as of September 30, 2019 and March 31, 2019 | 0 | 0 |
Additional paid–in capital | 1,404 | 1,404 |
Retained earnings | 453 | 203 |
Accumulated other comprehensive income (loss) | (583) | (506) |
Total equity of our common shareholder | 1,274 | 1,101 |
Noncontrolling interest | (32) | (35) |
Total equity | 1,242 | 1,066 |
Total liabilities and equity | $ 9,577 | $ 9,563 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ (6) | $ (7) |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES | ||||
Net income | $ 123 | $ 116 | $ 250 | $ 253 |
Adjustments to determine net cash provided by operating activities: | ||||
Depreciation and amortization | 88 | 86 | 176 | 172 |
(Gain) loss on unrealized derivatives and other realized derivatives in investing activities, net | (21) | (8) | ||
(Gain) loss on sale of assets | (1) | (1) | (2) | 2 |
Impairment charges | 11 | 0 | ||
Deferred income taxes, net | 32 | 21 | ||
Equity in net (gain) loss of non-consolidated affiliates | 0 | (1) | 0 | (1) |
Amortization of debt issuance costs and carrying value adjustments | 9 | 9 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 51 | (70) | ||
Inventories | (22) | (237) | ||
Accounts payable | (57) | 141 | ||
Other current assets | (4) | (49) | ||
Other current liabilities | (94) | (20) | ||
Other noncurrent assets | 2 | (10) | ||
Other noncurrent liabilities | (34) | 7 | ||
Net cash provided by (used in) operating activities | 297 | 210 | ||
INVESTING ACTIVITIES | ||||
Capital expenditures | (138) | (60) | (300) | (114) |
Acquisition of assets under a capital lease | 0 | 239 | ||
Proceeds from sales of assets, third party, net of transaction fees and hedging | 3 | 2 | ||
Proceeds from investment in and advances to non-consolidated affiliates, net | 11 | 6 | ||
Proceeds (outflows) from the settlement of derivative instruments, net | 3 | (5) | ||
Other | 7 | 7 | ||
Net cash provided by (used in) investing activities | (276) | (343) | ||
FINANCING ACTIVITIES | ||||
Proceeds from issuance of long-term and short-term borrowings | 12 | 0 | ||
Principal payments of long-term and short-term borrowings | (11) | (40) | ||
Revolving credit facilities and other, net | (23) | 103 | ||
Debt issuance costs | (2) | (2) | ||
Net cash provided by (used in) financing activities | (24) | 61 | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | (3) | (72) | ||
Effect of exchange rate changes on cash | (11) | (19) | ||
Cash, cash equivalents and restricted cash — beginning of period | 960 | 932 | ||
Cash, cash equivalents and restricted cash — end of period | 946 | 841 | 946 | 841 |
Cash and cash equivalents | 935 | 829 | 935 | 829 |
Restricted cash (Included in Other long-term assets) | $ 11 | $ 12 | $ 11 | $ 12 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Shareholder's (Deficit) Equity (unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | (Accumulated Deficit)/Retained Earnings | Accumulated Other Comprehensive Loss (AOCI) | Non- controlling Interests |
Beginning balance, shares at Mar. 31, 2018 | 1,000 | |||||
Beginning balance at Mar. 31, 2018 | $ 823 | $ 0 | $ 1,404 | $ (283) | $ (261) | $ (37) |
Increase (Decrease) in Stockholders' Equity | ||||||
Adoption of accounting standards updates | 36 | 52 | (16) | |||
Ending balance, shares at Apr. 01, 2018 | 1,000 | |||||
Ending balance at Apr. 01, 2018 | 859 | $ 0 | 1,404 | (231) | (277) | (37) |
Beginning balance, shares at Mar. 31, 2018 | 1,000 | |||||
Beginning balance at Mar. 31, 2018 | 823 | $ 0 | 1,404 | (283) | (261) | (37) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 253 | 0 | 0 | 253 | 0 | 0 |
Currency translation adjustment included in AOCI | (118) | $ 0 | 0 | 0 | (118) | 0 |
Change in fair value of effective portion of cash flow hedges, net of tax benefit, included in AOCI | (40) | (40) | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | 20 | 19 | 1 | |||
Ending balance, shares at Sep. 30, 2018 | 1,000 | |||||
Ending balance at Sep. 30, 2018 | 974 | $ 0 | 1,404 | 22 | (416) | (36) |
Beginning balance, shares at Jun. 30, 2018 | 1,000 | |||||
Beginning balance at Jun. 30, 2018 | 843 | $ 0 | 1,404 | (94) | (430) | (37) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 116 | $ 0 | 0 | 116 | 0 | 0 |
Currency translation adjustment included in AOCI | (1) | 0 | ||||
Change in fair value of effective portion of cash flow hedges, net of tax benefit, included in AOCI | 9 | 9 | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | 7 | 6 | 1 | |||
Ending balance, shares at Sep. 30, 2018 | 1,000 | |||||
Ending balance at Sep. 30, 2018 | 974 | $ 0 | 1,404 | 22 | (416) | (36) |
Beginning balance, shares at Mar. 31, 2019 | 1,000 | |||||
Beginning balance at Mar. 31, 2019 | 1,066 | $ 0 | 1,404 | 203 | (506) | (35) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 250 | 250 | ||||
Currency translation adjustment included in AOCI | (81) | (81) | ||||
Change in fair value of effective portion of cash flow hedges, net of tax benefit, included in AOCI | (11) | (11) | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | 18 | 15 | 3 | |||
Ending balance, shares at Sep. 30, 2019 | 1,000 | |||||
Ending balance at Sep. 30, 2019 | 1,242 | $ 0 | 1,404 | 453 | (583) | (32) |
Beginning balance, shares at Jun. 30, 2019 | 1,000 | |||||
Beginning balance at Jun. 30, 2019 | 1,218 | $ 0 | 1,404 | 330 | (483) | (33) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income attributable to our common shareholder | 123 | $ 0 | 0 | 123 | 0 | 0 |
Currency translation adjustment included in AOCI | (86) | 0 | ||||
Change in fair value of effective portion of cash flow hedges, net of tax benefit, included in AOCI | (25) | (25) | ||||
Change in pension and other benefits, net of tax provision, included in AOCI | 12 | 11 | 1 | |||
Ending balance, shares at Sep. 30, 2019 | 1,000 | |||||
Ending balance at Sep. 30, 2019 | $ 1,242 | $ 0 | $ 1,404 | $ 453 | $ (583) | $ (32) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholder's (Deficit) Equity (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Tax benefit on change in fair value of cash flow hedges | $ 11 | $ 5 | $ 2 | $ 17 |
Tax provision on change in pension and other benefits | $ 6 | $ 8 | $ 3 | $ 8 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES References herein to “Novelis,” the “Company,” “we,” “our,” or “us” refer to Novelis Inc. and its subsidiaries unless the context specifically indicates otherwise. References herein to “Hindalco” refer to Hindalco Industries Limited. Hindalco acquired Novelis in May 2007. All of the common shares of Novelis are owned directly by AV Metals Inc. and indirectly by Hindalco. Organization and Description of Business We produce aluminum sheet and light gauge products for use in the packaging market, which includes beverage and food can and foil products, as well as for use in the automotive, transportation, electronics, architectural and industrial product markets. We have recycling operations in many of our plants to recycle post-consumer aluminum, such as used-beverage cans and post-industrial aluminum, such as class scrap. As of September 30, 2019 , we had manufacturing operations in nine countries on four continents: North America, South America, Asia and Europe, through 23 operating facilities, including recycling operations in twelve of these plants. The March 31, 2019 condensed consolidated balance sheet data was derived from the March 31, 2019 audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes in our Form 10-K for the year-ended March 31, 2019 filed with the United States Securities and Exchange Commission (SEC) on May 8, 2019 . Management believes that all adjustments necessary for the fair statement of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. Consolidation Policy Our condensed consolidated financial statements include the assets, liabilities, revenues and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate all significant intercompany accounts and transactions from our condensed consolidated financial statements. We use the equity method to account for our investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies. Consolidated "Net income attributable to our common shareholder" includes our share of net income (loss) of these entities. Restricted Cash Policy Restricted cash is comprised of cash deposits for employee benefits and is disclosed on the condensed consolidated statement of cash flows. Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The principal areas of judgment relate to (1) the fair value of derivative financial instruments; (2) impairment of goodwill; (3) impairment of long lived assets and other intangible assets; (4) impairment and assessment of consolidation of equity investments; (5) actuarial assumptions related to pension and other postretirement benefit plans; (6) tax uncertainties and valuation allowances; and (7) assessment of loss contingencies, including environmental and litigation liabilities. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluations. Actual results could differ from the estimates we have used. Recently Adopted Accounting Standards Standard Adoption Description Disclosure Impact ASU 2019-07, Codification Updates to SEC Sections (Issued July 2019) July 1, 2019 The standard provides various codification updates and improvements to address comments received. The adoption of this standard did not have an impact on the condensed consolidated financial statements. Our condensed consolidated statement of shareholder's equity now discloses current and prior period quarter-to-date activity as required by the ASU. ASU 2016-02, Leases (Topic 842) along with additional technical improvements, practical expedients, and clarifications since issued. (Issued February 2016) April 1, 2019 The standard requires organizations that lease assets to recognize assets and liabilities for the rights and obligations created by the leases on balance sheet. The standard requires qualitative and quantitative disclosures to help investors and financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. We recognized right-of-use assets and lease liabilities on our consolidated balance sheets with no impact to the opening balance of retained earnings. The adoption of this standard did not have a material effect on the condensed consolidated statement of operations or the condensed consolidated statement of cash flows. See Note 5 — Leases for further details on the adoption of this standard. ASU 2018-09, Codification Improvements (Issued July 2018) April 1, 2019 The standard provides various codification updates and improvements to address comments received. The adoption of this standard did not have an impact on the condensed consolidated financial statements and disclosures. ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Issued October 2018) April 1, 2019 The standard permits the use of the OIS based on the SOFR as a U.S. benchmark interest rate for purposes of hedge accounting under Topic 815 as requested by the Federal Reserve Board during deliberations leading to the issuance of ASU 2017-12. The FASB recognized that although the OIS rate based on SOFR is not yet widely recognized and quoted within the U.S. financial market, the attributes of the repo rates underlying the calculation of SOFR are recognized. The adoption of this standard did not have an impact on the condensed consolidated financial statements and disclosures. The Company does not currently have any interest rate derivative instruments, but is currently evaluating the potential future impact of this standard. ASU 2018-02, Income Statement-Reporting Comprehensive . (Issued February 2018) April 1, 2018 This standard provides an option to reclassify stranded tax effects within Accumulated other comprehensive income (loss) (AOCI) to Retained earnings due to the U.S. federal corporate income tax rate change in the U.S. Tax Cuts and Jobs Act of 2017 (the “Act”). We reclassified $16 million into retained earnings of our common shareholder from AOCI. This reclassification consisted of deferred taxes originally recorded in AOCI at rates that exceeded the newly enacted U.S. federal corporate tax rate. There was no impact to net income. Certain prior period amounts have been adjusted as a result of the adoption of this standard. ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Asset Transfers of Assets Other than Inventory (Issued October 2016) April 1, 2018 This standard eliminates the exception for all intra-entity sales of assets other than inventory. It requires the tax effect of intra-entity sales of assets other than inventory to be recognized currently which will impact Novelis’ effective tax rate. The changes require the current and deferred income tax consequences of the intra-entity transfer to be recorded when the transaction occurs. We adopted this standard on a modified retrospective basis and the cumulative effect of the change on retained earnings is $36 million with a corresponding impact to deferred tax balances. Certain prior period amounts have been adjusted as a result of the adoption of this standard. Recently Issued Accounting Standards (Not yet adopted) Standard Adoption Description Disclosure Impact ASU 2019-04, Codification Improvements: Topic 326: Financial Instruments - Credit Losses, Topic 815: Derivatives and Hedging, and Topic 825: Financial Instruments Various The standard provides various codification updates and improvements to address comments received. The Company is currently evaluating the impact of this standard. ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities (Issued October 2018) April 1, 2020 This standard eliminates the requirement that entities consider indirect interests held through related parties under common control in their entirety when assessing whether a decision-making fee is a variable interest. Instead, the reporting entity must consider such indirect interests on a proportionate basis. The Company is currently evaluating the impact of this standard. ASU 2018-15, Intangibles-Goodwill and Other Internal-Use Software (Topic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that Is a Service Contract (Issued August 2018) April 1, 2020 This standard requires capitalization of implementation costs incurred in a hosting arrangement that is a service contract. This change will better align with requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected. The Company is currently evaluating the impact of this standard. ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (Issued August 2018) April 1, 2020 This standard added requirements for new disclosures such as requiring a narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period and also an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by ASC 715. Further, the standard removes some currently required disclosures such as (a) the requirement (for public entities) to disclose the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits and (b) the amounts in accumulated other comprehensive income "OCI" expected to be recognized in net periodic benefit costs over the next fiscal year. The Company is currently evaluating the impact of this standard. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Issued January 2017) April 1, 2020 This standard removes Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. Under the simplified model, a goodwill impairment is calculated as the difference between the carrying amount of the reporting unit and its fair value, but not to exceed the carrying amount of goodwill allocated to that reporting unit. This standard will need to be considered each time Novelis performs an assessment of goodwill for impairment under the quantitative test. The Company is currently evaluating the impact of this standard. ASU 2016-13, Financial Instrument-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments along with additional technical improvements and clarifications since issued. (Issued June 2016) April 1, 2020 The standard provides financial statement users with more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The “current expected credit loss” (CECL) model requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. The Company is currently evaluating the impact of this standard. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 6 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company's contracts with customers are comprised of purchase orders along with standard terms and conditions. These contracts with customers typically consist of the manufacture of products which represent single performance obligations that are satisfied upon transfer of control of the product to the customer at a point in time. Transfer of control is assessed based on alternative use of the products we produce and our enforceable right to payment for performance to date under the contract terms. Transfer of control and revenue recognition generally occur upon shipment or delivery of the product, which is when title, ownership and risk of loss pass to the customer and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (truck, train, or vessel). The length of payment terms can vary per contract but none extend beyond one year. Revenue is recognized net of any volume rebates or other incentives. We disaggregate revenue from contracts with customers on a geographic basis based on our segment view. This disaggregation also achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. We manage our activities on the basis of geographical regions and are organized under four operating segments: North America, South America, Asia and Europe. See Note 18 — Segment, Major Customer and Major Supplier Information for further information about our segment revenue. |
Restructuring and Impairment, N
Restructuring and Impairment, Net | 6 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND IMPAIRMENT, NET | RESTRUCTURING AND IMPAIRMENT, NET "Restructuring and impairment, net" includes restructuring costs, impairments, and other related expenses. "Restructuring and impairment, net" for the three and six months ended September 30, 2019 totaled $32 million and $33 million , respectively, and is primarily related to portfolio optimization efforts resulting in the upcoming closure of certain non-core operations in Europe. Of the $32 million recognized during the three months ended September 30, 2019 , $21 million is related to employee severance and $11 million is related primarily to the impairment of property, plant, and equipment. We do not anticipate significant changes in relation to this restructuring plan between now and March 2020, the expected date that operations plan to cease, that will have a material impact on future results of operations, liquidity, and capital resources. "Restructuring and impairment, net" for the three months ended September 30, 2018 totaled less than $1 million . "Restructuring and impairment, net" for the six months ended September 30, 2018 totaled $1 million . As of September 30, 2019 , the restructuring liability totaled $36 million with $27 million included in "Accrued expenses and other current liabilities" and the remaining is within "Other long-term liabilities" on our accompanying condensed consolidated balance sheet. As of September 30, 2019 , the restructuring liability totaled $24 million for the Europe segment, $11 million for South America segment, and $1 million for the North America segment. The following table summarizes our restructuring liability activity and other impairment charges (in millions). Total restructuring liabilities Other restructuring charges (A) Total restructuring charges Other impairments (B) Total and impairments, net Balance as of March 31, 2019 $ 17 Fiscal 2020 Activity: Expenses 22 11 $ 33 — $ 33 Cash payments (2 ) Foreign currency (1 ) Balance as of September 30, 2019 $ 36 ____________________ (A) Other restructuring charges include restructuring related impairments and period expenses that were not recorded through the restructuring liability. (B) Other impairment charges not related to restructuring activities. |
Inventories
Inventories | 6 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES "Inventories" consist of the following (in millions). September 30, March 31, Finished goods $ 379 $ 354 Work in process 654 684 Raw materials 249 254 Supplies 172 168 Inventories $ 1,454 $ 1,460 |
Leases
Leases | 6 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES We lease certain land, buildings and equipment under noncancelable operating lease arrangements and certain office space under finance (capital) lease arrangements. Upon adoption of ASC 842, we elected the following practical expedients: • Non-lease components: Leases that contain non-lease components (primarily equipment maintenance) are accounted for as a single component and recorded on the condensed consolidated balance sheet for certain asset classes including real estate and certain equipment. Non-lease components include, but are not limited to, common area maintenance, service arrangements, and supply agreements. • Package of practical expedients: We will not reassess whether any expired or existing contracts are leases or contain leases, the lease classification for any expired or existing leases or any initial direct costs for any expired or existing leases as of the transition date. • Additional transition method: We adopted the standard using a modified retrospective approach, applying the standard's transition provisions at the beginning of the period of adoption and maintain previous disclosure requirements for comparative periods. We used the following policies and/or assumptions in evaluating our lease population: • Lease determination: Novelis considers a contract to be or to contain a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. • Discount rate: When our lease contracts do not provide a readily determinable implicit rate, we use the estimated incremental borrowing rate based on information available at the inception of the lease. The discount rate is determined by region and asset class. • Variable payments: Novelis includes payments that are based on an index or rate within the calculation of right of use leased assets and lease liabilities, initially measured at the lease commencement date. Other variable lease payments include, but are not limited to, maintenance, service, and supply costs. These costs are disclosed as a component of total lease costs. • Purchase options: Certain leases include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. • Renewal options: Most leases include one or more options to renew, with renewal terms that can extend the lease term from one or more years. The exercise of lease renewal options is at our sole discretion. • Residual value guarantees, restrictions, or covenants: Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. • Short-term leases: Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term and expense the associated operating lease costs to "Selling, general, and administrative expenses" on the condensed consolidated statement of operations. The table below presents the classification of leasing assets and liabilities. Leases Balance Sheet Classification September 30, 2019 Assets Operating lease right-of-use assets Other long-term assets $ 100 Finance lease assets (A) Property, plant and equipment, net 2 Total lease assets $ 102 Liabilities Current Operating lease liabilities Accrued expenses and other current liabilities $ 24 Finance lease liabilities Current portion of long-term debt — Long term Operating lease liabilities Other long-term liabilities 76 Finance lease liabilities Long-term debt, net of current portion 1 Total lease liabilities $ 101 _______ _________________ (A) Finance lease assets are recorded net of accumulated depreciation of $6 million as of September 30, 2019 . The table below presents the classification of lease related expenses or income as reported on the condensed consolidated statements of operations. Amortization of and interest on liabilities related to finance leases were less than $1 million during the three and six months ended September 30, 2019 . Sublease income was less than $1 million during the three and six months ended September 30, 2019 . Expense Type Income Statement Classification Three Months Ended September 30, 2019 Six Months Ended September 30, 2019 Operating lease costs (A) Selling, general and administrative expenses $ 13 $ 24 _______ _________________ (A) Operating lease costs include short-term leases and variable lease costs. Future minimum lease payments as of September 30, 2019 , for our operating and finance leases having an initial or remaining non-cancelable lease term in excess of one year are as follows (in millions). Period Ending September 30, Operating leases (A) Finance leases (B) Total 2020 $ 17 $ — $ 17 2021 26 — 26 2022 19 — 19 2023 14 — 14 2024 13 — 13 Thereafter 27 1 28 Total minimum lease payments $ 116 $ 1 $ 117 Less: interest 16 — 16 Present value of lease liabilities $ 100 $ 1 $ 101 _______ _________________ (A) Operating lease payments related to options to extend lease terms that are reasonably certain of being exercised are immaterial and we do not have leases signed but not yet commenced as of September 30, 2019 . (B) Finance lease payments related to options to extend lease terms that are reasonably certain of being exercised are immaterial and we do not have leases signed but not yet commenced as of September 30, 2019 . The following table presents the weighted-average remaining lease term and discount rates. Weighted-average remaining lease term (years) As of September 30, 2019 Operating leases 6.5 Finance leases 6.7 Weighted-average discount rate Operating leases 3.73% Finance leases 3.11% The following table presents supplemental information on our operating leases for the six months ended September 30, 2019 (in millions). Operating and financing cash flows from finance leases were less than $1 million for the six months ended September 30, 2019 . Leased assets obtained in exchange for new operating and financing lease liabilities were $14 million for the six months ended September 30, 2019 , individually and in the aggregate. Supplemental information Six Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 27 Disclosure related to periods prior to adoption of the new lease standard The following table sets forth the aggregate minimum lease payments under finance and operating leases (in millions). Year Ending March 31, Operating leases Finance lease obligations 2020 $ 29 $ — 2021 22 — 2022 16 — 2023 12 — 2024 10 — Thereafter 17 1 Total minimum lease payments $ 106 $ 1 Less: interest portion on finance leases — Principal obligation on finance leases $ 1 |
LEASES | LEASES We lease certain land, buildings and equipment under noncancelable operating lease arrangements and certain office space under finance (capital) lease arrangements. Upon adoption of ASC 842, we elected the following practical expedients: • Non-lease components: Leases that contain non-lease components (primarily equipment maintenance) are accounted for as a single component and recorded on the condensed consolidated balance sheet for certain asset classes including real estate and certain equipment. Non-lease components include, but are not limited to, common area maintenance, service arrangements, and supply agreements. • Package of practical expedients: We will not reassess whether any expired or existing contracts are leases or contain leases, the lease classification for any expired or existing leases or any initial direct costs for any expired or existing leases as of the transition date. • Additional transition method: We adopted the standard using a modified retrospective approach, applying the standard's transition provisions at the beginning of the period of adoption and maintain previous disclosure requirements for comparative periods. We used the following policies and/or assumptions in evaluating our lease population: • Lease determination: Novelis considers a contract to be or to contain a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. • Discount rate: When our lease contracts do not provide a readily determinable implicit rate, we use the estimated incremental borrowing rate based on information available at the inception of the lease. The discount rate is determined by region and asset class. • Variable payments: Novelis includes payments that are based on an index or rate within the calculation of right of use leased assets and lease liabilities, initially measured at the lease commencement date. Other variable lease payments include, but are not limited to, maintenance, service, and supply costs. These costs are disclosed as a component of total lease costs. • Purchase options: Certain leases include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. • Renewal options: Most leases include one or more options to renew, with renewal terms that can extend the lease term from one or more years. The exercise of lease renewal options is at our sole discretion. • Residual value guarantees, restrictions, or covenants: Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. • Short-term leases: Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term and expense the associated operating lease costs to "Selling, general, and administrative expenses" on the condensed consolidated statement of operations. The table below presents the classification of leasing assets and liabilities. Leases Balance Sheet Classification September 30, 2019 Assets Operating lease right-of-use assets Other long-term assets $ 100 Finance lease assets (A) Property, plant and equipment, net 2 Total lease assets $ 102 Liabilities Current Operating lease liabilities Accrued expenses and other current liabilities $ 24 Finance lease liabilities Current portion of long-term debt — Long term Operating lease liabilities Other long-term liabilities 76 Finance lease liabilities Long-term debt, net of current portion 1 Total lease liabilities $ 101 _______ _________________ (A) Finance lease assets are recorded net of accumulated depreciation of $6 million as of September 30, 2019 . The table below presents the classification of lease related expenses or income as reported on the condensed consolidated statements of operations. Amortization of and interest on liabilities related to finance leases were less than $1 million during the three and six months ended September 30, 2019 . Sublease income was less than $1 million during the three and six months ended September 30, 2019 . Expense Type Income Statement Classification Three Months Ended September 30, 2019 Six Months Ended September 30, 2019 Operating lease costs (A) Selling, general and administrative expenses $ 13 $ 24 _______ _________________ (A) Operating lease costs include short-term leases and variable lease costs. Future minimum lease payments as of September 30, 2019 , for our operating and finance leases having an initial or remaining non-cancelable lease term in excess of one year are as follows (in millions). Period Ending September 30, Operating leases (A) Finance leases (B) Total 2020 $ 17 $ — $ 17 2021 26 — 26 2022 19 — 19 2023 14 — 14 2024 13 — 13 Thereafter 27 1 28 Total minimum lease payments $ 116 $ 1 $ 117 Less: interest 16 — 16 Present value of lease liabilities $ 100 $ 1 $ 101 _______ _________________ (A) Operating lease payments related to options to extend lease terms that are reasonably certain of being exercised are immaterial and we do not have leases signed but not yet commenced as of September 30, 2019 . (B) Finance lease payments related to options to extend lease terms that are reasonably certain of being exercised are immaterial and we do not have leases signed but not yet commenced as of September 30, 2019 . The following table presents the weighted-average remaining lease term and discount rates. Weighted-average remaining lease term (years) As of September 30, 2019 Operating leases 6.5 Finance leases 6.7 Weighted-average discount rate Operating leases 3.73% Finance leases 3.11% The following table presents supplemental information on our operating leases for the six months ended September 30, 2019 (in millions). Operating and financing cash flows from finance leases were less than $1 million for the six months ended September 30, 2019 . Leased assets obtained in exchange for new operating and financing lease liabilities were $14 million for the six months ended September 30, 2019 , individually and in the aggregate. Supplemental information Six Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 27 Disclosure related to periods prior to adoption of the new lease standard The following table sets forth the aggregate minimum lease payments under finance and operating leases (in millions). Year Ending March 31, Operating leases Finance lease obligations 2020 $ 29 $ — 2021 22 — 2022 16 — 2023 12 — 2024 10 — Thereafter 17 1 Total minimum lease payments $ 106 $ 1 Less: interest portion on finance leases — Principal obligation on finance leases $ 1 |
Consolidation
Consolidation | 6 Months Ended |
Sep. 30, 2019 | |
Consolidation [Abstract] | |
CONSOLIDATION | CONSOLIDATION Variable Interest Entities (VIE) The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and consolidates the VIE. An entity is deemed to have a controlling financial interest and is the primary beneficiary of a VIE if it has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Logan Aluminum Inc. (Logan) is a consolidated joint venture in which we hold 40% ownership. Our joint venture partner is Tri-Arrows Aluminum Inc. (Tri-Arrows). Logan processes metal received from Novelis and Tri-Arrows and charges the respective partner a fee to cover expenses. Logan is a thinly capitalized VIE that relies on the regular reimbursement of costs and expenses from its investors, Novelis and Tri-Arrows, to fund its operations. Novelis is considered the primary beneficiary and consolidates Logan since it has the power to direct activities that most significantly impact Logan's economic performance, an obligation to absorb expected losses and the right to receive benefits that could potentially be significant. Other than the contractually required reimbursements, we do not provide other material support to Logan. Logan's creditors do not have recourse to our general credit. There are significant other assets used in the operations of Logan that are not part of the joint venture, as they are directly owned and consolidated by Novelis or Tri-Arrows. The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our condensed consolidated balance sheets (in millions). September 30, March 31, Assets Current assets Cash and cash equivalents $ 5 $ 1 Accounts receivable 14 40 Inventories 82 72 Prepaid expenses and other current assets 1 1 Total current assets $ 102 $ 114 Property, plant and equipment, net 24 29 Goodwill 12 12 Deferred income taxes 64 64 Other long-term assets 35 27 Total assets $ 237 $ 246 Liabilities Current liabilities Accounts payable $ 39 $ 43 Accrued expenses and other current liabilities 21 21 Total current liabilities $ 60 $ 64 Accrued postretirement benefits 238 245 Other long-term liabilities 1 1 Total liabilities $ 299 $ 310 |
Investment In and Advances to N
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions | 6 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS | INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS Included in the accompanying condensed consolidated financial statements are transactions and balances arising from business we conducted with our equity method non-consolidated affiliates. See Note 18 — Segment, Major Customer and Major Supplier Information for the respective carrying values by segment as reported in our condensed consolidated balance sheets (in millions). Alunorf Aluminium Norf GmbH (Alunorf) is a joint venture investment between Novelis Deutschland GmbH, a subsidiary of Novelis, and Hydro Aluminum Deutschland GmbH (Hydro). Each of the parties to the joint venture holds a 50% interest in the equity, profits and losses, shareholder voting, management control and rights to use the production capacity of the facility. Alunorf tolls aluminum and charges the respective partner a fee to cover the associated expense. UAL Ulsan Aluminum, Ltd. (UAL) is a joint venture investment between Novelis Korea Ltd., a subsidiary of Novelis, and Kobe Steel Ltd (Kobe). UAL currently produces flat rolled aluminum products exclusively for Novelis and Kobe. As of September 30, 2019 , Novelis and Kobe both hold 50% interests in UAL. UAL is a thinly capitalized VIE that relies on the regular reimbursement of costs and expenses from its investors, Novelis and Kobe. UAL is controlled by an equally represented Board of Directors in which neither entity has sole decision-making ability regarding production operations or other significant decisions. Furthermore, neither entity has the ability to take the majority share of production or associated costs over the life of the joint venture. Our risk of loss is limited to the carrying value of our investment in and inventory-related receivables from UAL. UAL's creditors do not have recourse to our general credit. Therefore, UAL is accounted for as an equity method investment and Novelis is not considered the primary beneficiary. AluInfra AluInfra Services (AluInfra) is a joint venture investment between Novelis Switzerland SA (Novelis Switzerland), a subsidiary of Novelis, and Constellium N.V. (Constellium). Each of the parties to the joint venture holds a 50% interest in the equity, profits and losses, shareholder voting, management control and rights to use the facility. The following table summarizes the results of operations of our equity method affiliates in the aggregate, and the nature and amounts of significant transactions we have with our non-consolidated affiliates (in millions). The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Net sales $ 308 $ 332 $ 608 $ 650 Costs and expenses related to net sales 302 327 595 642 Income tax provision 2 2 3 3 Net income $ 4 $ 3 $ 10 $ 5 Purchases of tolling services from Alunorf (Novelis' share) $ 63 $ 65 $ 127 $ 129 The following table describes the period-end account balances, shown as related party balances in the accompanying condensed consolidated balance sheets (in millions). We had no other material related party balances with non-consolidated affiliates. September 30, March 31, Accounts receivable-related parties $ 159 $ 164 Accounts payable-related parties $ 202 $ 175 Transactions with Hindalco We occasionally have related party transactions with Hindalco. During the three and six months ended September 30, 2019 and 2018 , we recorded “Net sales” of less than $1 million between Novelis and Hindalco related primarily to sales of equipment and other services. As of September 30, 2019 and March 31, 2019 , there was $1 million and less than $1 million of outstanding "Accounts receivable, net - related parties" and "Accounts Payable, net - related parties" related to transactions with Hindalco, respectively. During each of the three and six months ended September 30, 2019 and 2018 , Novelis purchased less than $1 million in raw materials from Hindalco. |
Debt
Debt | 6 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following (in millions). September 30, 2019 March 31, 2019 Interest Rates (A) Principal Unamortized Carrying Value Adjustments (B) Carrying Value Principal Unamortized Carrying Value Adjustments (B) Carrying Value Third party debt: Short-term borrowings 4.19 % $ 14 $ — $ 14 $ 39 $ — $ 39 Novelis Inc. Floating rate Term Loan Facility, due June 2022 3.95 % 1,751 (28 ) 1,723 1,760 (33 ) 1,727 Novelis Corporation 5.875% Senior Notes, due September 2026 5.875 % 1,500 (17 ) 1,483 1,500 (19 ) 1,481 6.25% Senior Notes, due August 2024 6.25 % 1,150 (12 ) 1,138 1,150 (14 ) 1,136 Novelis China Bank loans, due through June 2027 (CNY 83 million) 4.90 % 12 — 12 — — — Other Finance lease obligations and other debt, due through December 2026 4.54 % 1 — 1 3 — 3 Total debt $ 4,428 $ (57 ) $ 4,371 $ 4,452 $ (66 ) $ 4,386 Less: Short-term borrowings (14 ) — (14 ) (39 ) — (39 ) Less: Current portion of long-term debt (19 ) — (19 ) (19 ) — (19 ) Long-term debt, net of current portion $ 4,395 $ (57 ) $ 4,338 $ 4,394 $ (66 ) $ 4,328 ________ _________________ (A) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of September 30, 2019 , and therefore, exclude the effects of related interest rate swaps and accretion/amortization of fair value adjustments as a result of purchase accounting in connection with Hindalco's purchase of Novelis and accretion/amortization of debt issuance costs related to refinancing transactions and additional borrowings. We present stated rates of interest because they reflect the rate at which cash will be paid for future debt service. (B) Amounts include unamortized debt issuance costs, fair value adjustments and debt discounts. Principal repayment requirements for our total debt over the next five years and thereafter using exchange rates as of September 30, 2019 (for our debt denominated in foreign currencies) are as follows (in millions). As of September 30, 2019 Amount Short-term borrowings and current portion of long-term debt due within one year $ 33 2 years 18 3 years 1,716 4 years 1 5 years 1,152 Thereafter 1,508 Total $ 4,428 Short Term Credit Facility Our credit agreement (the “Short Term Credit Agreement”) governs the commitments of certain financial institutions to provide, subject to closing conditions (including the concurrent closing of our previously announced proposed acquisition of Aleris Corporation (Aleris)), up to $1.5 billion of short term loans for purposes of funding a portion of the consideration payable in connection with the proposed acquisition of Aleris or repaying certain indebtedness of Aleris and its subsidiaries. The short term loans, once borrowed, will be unsecured, will mature one year from the borrowing date of the loans, will not be subject to any amortization payments and will accrue interest at LIBOR (as defined in the Term Loan Facility described below) plus 0.95% . The short term loans will be guaranteed by the same entities that have provided guarantees under the Term Loan Facility and ABL Revolver. Senior Notes As of September 30, 2019 , we were in compliance with the covenants of our Senior Notes. Term Loan Facility On December 18, 2018, we entered into an increase joinder amendment (the “Term Loan Increase Joinder Amendment”) to our existing secured term loan credit agreement (as amended by the Term Loan Increase Joinder Amendment, the “Amended Secured Term Loan Credit Agreement”). The Term Loan Increase Joinder Amendment governs the commitments of certain financial institutions to provide, subject to closing conditions (including the concurrent closing of the proposed acquisition of Aleris), up to $775 million of incremental term loans under our existing term loan credit agreement. The proceeds of the incremental term loans may be used to pay a portion of the consideration payable in connection with the proposed acquisition of Aleris and fees and expenses related to the proposed acquisition, the incremental term loans and short term loans. The incremental term loans will mature on the fifth anniversary of the date on which they are borrowed, subject to 0.25% quarterly amortization payments. The incremental term loans will, once borrowed, accrue interest at LIBOR (as defined in the Amended Secured Term Loan Credit Agreement) plus 1.75% . The incremental term loans will be subject to the same voluntary and mandatory prepayment provisions, affirmative and negative covenants and events of default as those applicable to the existing term loans outstanding under the Amended Secured Term Loan Credit Agreement. The incremental term loans will be guaranteed by the same entities that have provided guarantees under our Term Loan Facility and secured on a pari passu basis with our existing term loans by security interests in substantially all of the assets of the Company and the guarantors, subject to our existing intercreditor agreement. As of September 30, 2019 , borrowings outstanding under the Term Loan Facility (excluding the incremental term loans) consisted of a $1.8 billion five -year secured term loan with $18 million due within one year. As of September 30, 2019 , we were in compliance with the covenants of our Term Loan Facility. ABL Revolver In April 2019, we entered into an amendment (the "Amendment") to our existing ABL Revolver facility. Pursuant to the terms of the agreement, the commitments under the pre-existing $1 billion facility increased by $500 million on October 15, 2019. Aleris and certain of its subsidiaries will become borrowers under the ABL Revolver Facility upon closing of the proposed acquisition, and the Amendment includes additional changes to facilitate the proposed acquisition of Aleris (including permitting borrowings under the Short Term Credit Agreement) and the inclusion of certain Aleris assets in the borrowing base following the acquisition, if consummated. The Amendment also includes additional changes to increase our operating flexibility. As of September 30, 2019 , the ABL Revolver consisted of a $1 billion facility. As of September 30, 2019 , the revolver had a zero balance and $21 million was utilized for letters of credit. There was $759 million in remaining availability, including $104 million of remaining availability which can be utilized for letters of credit, and we were in compliance with the covenants of our ABL Revolver Facility. Other Short-Term Borrowings As of September 30, 2019 , the $14 million in short-term borrowings was primarily related to China loans (CNY 97 million ). We had $100 million in availability under our Novelis Korea revolving facilities and $16 million in availability under our Novelis China revolving facilities. China Bank Loans In September 2019, we entered into a credit agreement with the Bank of China to provide up to $75 million in unsecured loans to support previously announced capital expansion projects in China. Refer to our Form 10-K for the year-ended March 31, 2019 for details on the issuances and respective covenants of our senior notes, short term credit facility, and senior secured credit facilities, which includes the Term Loan Facility and ABL Revolver facility. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Sep. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION During the six months ended September 30, 2019 , we granted 2,681,386 Hindalco phantom restricted stock units (RSUs) and 3,475,995 Hindalco Stock Appreciation Rights (Hindalco SARs). Total compensation expense was $6 million and $12 million for the six months ended September 30, 2019 and 2018 , respectively. As of September 30, 2019 , the outstanding liability related to share-based compensation was $16 million . The cash payments made to settle all SAR liabilities were $3 million and $4 million in the six months ended September 30, 2019 and 2018 , respectively. Total cash payments made to settle RSUs were $9 million and $14 million in the six months ended September 30, 2019 and 2018 , respectively. Unrecognized compensation expense related to the non-vested Hindalco SARs (assuming all future performance criteria are met) was $4 million , which is expected to be recognized over a weighted average period of 1.5 years . Unrecognized compensation expense related to the RSUs was $8 million , which will be recognized over the remaining weighted average vesting period of 1.5 years . For a further description of authorized long term incentive plans (LTIPs), including Hindalco SARs, RSUs, and Novelis Performance Units, please refer to our Form 10-K for the year ended March 31, 2019. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 6 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below (in millions). Pension Benefit Plans Other Benefit Plans Three Months Ended September 30, Three Months Ended September 30, 2019 2018 2019 2018 Service cost $ 10 $ 10 $ 3 $ 2 Interest cost 15 15 2 2 Expected return on assets (18 ) (16 ) — — Amortization — losses, net 9 8 — 1 Net periodic benefit cost (A) $ 16 $ 17 $ 5 $ 5 Pension Benefit Plans Other Benefit Plans Six Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Service cost $ 20 $ 20 $ 6 $ 4 Interest cost 30 30 4 4 Expected return on assets (36 ) (32 ) — — Amortization — losses, net 17 16 — 2 Net periodic benefit cost (A) $ 31 $ 34 $ 10 $ 10 _________________________ (A) Service cost is included within " Cost of goods sold (exclusive of depreciation and amortization) " and " Selling, general and administrative expenses " while all other cost components are recorded within " Other (income) expenses, net ." The average expected long-term rate of return on plan assets is 5.5% in fiscal 2020 . Employer Contributions to Plans For pension plans, our policy is to fund an amount required to provide for contractual benefits attributed to service to date, and amortize unfunded actuarial liabilities typically over periods of 15 years or less. We also participate in savings plans in Canada and the U.S., as well as defined contribution pension plans in the U.S., U.K., Canada, Germany, Italy, Switzerland and Brazil. We contributed the following amounts (in millions) to all plans. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Funded pension plans $ 33 $ 14 $ 38 $ 16 Unfunded pension plans 3 3 5 6 Savings and defined contribution pension plans 7 7 17 16 Total contributions $ 43 $ 24 $ 60 $ 38 During the remainder of fiscal 2020 , we expect to contribute an additional $13 million to our funded pension plans, $7 million to our unfunded pension plans and $17 million to our savings and defined contribution pension plans. |
Currency Losses (Gains)
Currency Losses (Gains) | 6 Months Ended |
Sep. 30, 2019 | |
Foreign Currency [Abstract] | |
CURRENCY GAINS | CURRENCY (GAINS) LOSSES The following currency (gains) losses are included in “ Other (income) expenses, net ” in the accompanying condensed consolidated statements of operations (in millions). Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 (Gain) loss on remeasurement of monetary assets and liabilities, net $ (1 ) $ — $ (6 ) $ (6 ) (Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net 2 — 8 6 Currency (gains) losses, net $ 1 $ — $ 2 $ — The following currency gains (losses) are included in “ Accumulated other comprehensive income (loss) ," net of tax and “Noncontrolling interest” in the accompanying condensed consolidated balance sheets (in millions). Six Months Ended September 30, 2019 Year Ended March 31, 2019 Cumulative currency translation adjustment — beginning of period $ (236 ) $ (65 ) Effect of changes in exchange rates (81 ) (171 ) Cumulative currency translation adjustment — end of period $ (317 ) $ (236 ) |
Financial Instruments and Commo
Financial Instruments and Commodity Contracts | 6 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS | FINANCIAL INSTRUMENTS AND COMMODITY CONTRACTS The following tables summarize the gross fair values of our financial instruments and commodity contracts as of the periods presented (in millions). September 30, 2019 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent (A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 28 $ — $ (5 ) $ (1 ) $ 22 Currency exchange contracts 3 — (31 ) (9 ) (37 ) Energy contracts — — (5 ) (6 ) (11 ) Total derivatives designated as hedging instruments $ 31 $ — $ (41 ) $ (16 ) $ (26 ) Derivatives not designated as hedging instruments: Metal contracts 47 — (46 ) — 1 Currency exchange contracts 23 — (15 ) — 8 Total derivatives not designated as hedging instruments $ 70 $ — $ (61 ) $ — $ 9 Total derivative fair value $ 101 $ — $ (102 ) $ (16 ) $ (17 ) March 31, 2019 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent (A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 6 $ — $ (10 ) $ — $ (4 ) Currency exchange contracts 4 — (15 ) (1 ) (12 ) Energy contracts — — (1 ) (4 ) (5 ) Total derivatives designated as hedging instruments $ 10 $ — $ (26 ) $ (5 ) $ (21 ) Derivatives not designated as hedging instruments: Metal contracts 38 1 (34 ) (1 ) 4 Currency exchange contracts 22 1 (27 ) (1 ) (5 ) Total derivatives not designated as hedging instruments $ 60 $ 2 $ (61 ) $ (2 ) $ (1 ) Total derivative fair value $ 70 $ 2 $ (87 ) $ (7 ) $ (22 ) _________________________ (A) The noncurrent portions of derivative assets and liabilities are included in “Other long-term assets-third parties” and in “Other long-term liabilities”, respectively, in the accompanying condensed consolidated balance sheets. Metal We use derivative instruments to preserve our conversion margins and manage the timing differences associated with metal price lag. We use over-the-counter derivatives indexed to the London Metals Exchange (LME) (referred to as our "aluminum derivative forward contracts") to reduce our exposure to fluctuating metal prices associated with the period of time between the pricing of our purchases of inventory and the pricing of the sale of that inventory to our customers, which is known as "metal price lag." We also purchase forward LME aluminum contracts simultaneously with our sales contracts with customers that contain fixed metal prices. These LME aluminum forward contracts directly hedge the economic risk of future metal price fluctuations to better match the selling price of the metal with the purchase price of the metal. The volatility in local market premiums also results in metal price lag. Price risk exposure arises from commitments to sell aluminum in future periods at fixed prices. We identify and designate certain LME aluminum forward contracts as fair value hedges of the metal price risk associated with fixed price sales commitments that qualify as firm commitments. We did not have any outstanding aluminum forward purchase contracts designated as fair value hedges as of September 30, 2019 and March 31, 2019 . Price risk arises due to fluctuating aluminum prices between the time the sales order is committed and the time the order is shipped. We identify and designate certain LME aluminum forward purchase contracts as cash flow hedges of the metal price risk associated with our future metal purchases that vary based on changes in the price of aluminum. Generally, such exposures do not extend beyond two years in length. The average duration of undesignated contracts is less than one year. Price risk exposure arises due to the timing lag between the LME based pricing of raw material aluminum purchases and the LME based pricing of finished product sales. We identify and designate certain LME aluminum forward sales contracts as cash flow hedges of the metal price risk associated with our future metal sales that vary based on changes in the price of aluminum. Generally, such exposures do not extend beyond two years in length. The average duration of undesignated contracts is less than one year . In addition to aluminum, we entered into LME copper and LMP forward contracts. As of September 30, 2019 and March 31, 2019 , the fair value of these contracts represented a liability and an asset, respectively, of less than $1 million . These contracts are undesignated with an average duration of less than two years . The following table summarizes our metal notional amounts in kilotonnes (kt). One kt is 1,000 metric tonnes. September 30, March 31, Hedge type Purchase (sale) Cash flow purchases 44 — Cash flow sales (387 ) (353 ) Not designated (32 ) 15 Total, net (375 ) (338 ) Foreign Currency We use foreign exchange forward contracts, cross-currency swaps and options to manage our exposure to changes in exchange rates. These exposures arise from recorded assets and liabilities, firm commitments and forecasted cash flows denominated in currencies other than the functional currency of certain operations. We use foreign currency contracts to hedge expected future foreign currency transactions, which include capital expenditures. These contracts cover the same periods as known or expected exposures. We had total notional amounts of $688 million and $703 million in outstanding foreign currency forwards designated as cash flow hedges as of September 30, 2019 and March 31, 2019 , respectively. We use foreign currency contracts to hedge our foreign currency exposure to our net investment in foreign subsidiaries. We did no t have any outstanding foreign currency forwards designated as net investment hedges as of September 30, 2019 and March 31, 2019 . As of September 30, 2019 and March 31, 2019 , we had outstanding foreign currency exchange contracts with a total notional amount of $846 million and $737 million , respectively, to primarily hedge balance sheet remeasurement risk, which were not designated as hedges. Contracts representing the majority of this notional amount will mature during the third quarter of fiscal 2020 and offset the remeasurement impact. Energy We own an interest in an electricity swap contract to hedge our exposure to fluctuating electricity prices, which matures on January 5, 2022. As of September 30, 2019 and March 31, 2019 , 1 million of notional megawatt hours was outstanding and the fair value of this swap was a liability of $5 million and $3 million, respectively. The electricity swap is designated as a cash flow hedge. We use natural gas forward purchase contracts to manage our exposure to fluctuating energy prices in North America. We had a notional of 13 million MMBTUs designated as cash flow hedges as of September 30, 2019 , and the fair value was a liability of $5 million . There was a notional of 15 million MMBTU forward contracts designated as cash flow hedges as of March 31, 2019 and the fair value was a liability of $2 million . As of September 30, 2019 and March 31, 2019 , we had notionals of less than 1 million MMBTU forward contracts that were not designated as hedges. The fair value of forward contracts not designated as hedges as of September 30, 2019 and March 31, 2019 was a liability of less than $1 million . The average duration of undesignated contracts is less than three years in length. One MMBTU is the equivalent of one decatherm, or one million British Thermal Units. We use diesel fuel forward contracts to manage our exposure to fluctuating fuel prices in North America. We had a notional of 6 million gallons designated as cash flow hedges as of September 30, 2019 , and the fair value was a liability of $1 million . There was a notional of 8 million gallons designated as cash flow hedges as of March 31, 2019 , and the fair value was a liability of less than $1 million . Interest Rate As of September 30, 2019 and March 31, 2019 , we had no outstanding interest rate swaps. Gain (Loss) Recognition The following table summarizes the gains (losses) associated with the change in fair value of derivative instruments not designated as hedges and the excluded portion of designated derivatives recognized in “ Other (income) expenses, net ” (in millions). Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Derivative instruments not designated as hedges Metal contracts $ (2 ) $ 10 $ (4 ) $ (6 ) Currency exchange contracts (2 ) 1 (8 ) (9 ) Energy contracts (A) 2 3 3 5 Gain (loss) recognized in "Other (income) expenses, net" $ (2 ) $ 14 $ (9 ) $ (10 ) Derivative instruments designated as hedges Gain (loss) recognized in "Other (income) expenses, net" (B) $ 2 $ — $ 2 $ — Total gain (loss) recognized in "Other (income) expenses, net" $ — $ 14 $ (7 ) $ (10 ) Balance sheet remeasurement currency exchange contract losses $ (2 ) $ — $ (8 ) $ (6 ) Realized gains (losses), net (1 ) 13 (8 ) (1 ) Unrealized gains (losses) on other derivative instruments, net 3 1 9 (3 ) Total gain (loss) recognized in "Other (income) expenses, net" $ — $ 14 $ (7 ) $ (10 ) _________________________ (A) Includes amounts related to diesel swaps not designated as hedges, and electricity swap settlements. (B) Amount includes: forward market premium/discount excluded from hedging relationship on designated foreign currency capital expenditure contracts; releases to income from AOCI on balance sheet remeasurement contracts. The following table summarizes the impact on AOCI and earnings of derivative instruments designated as cash flow hedges (in millions). Within the next twelve months, we expect to reclassify $2 million of losses from AOCI to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) “Other (Income) Expenses, net” (Ineffective and Amount of Gain (Loss) Three Months Ended September 30, Six Months Ended September 30, Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 2019 2018 2019 2018 Cash flow hedging derivatives Metal contracts $ 28 $ 29 $ 76 $ (36 ) $ — $ — $ — $ — Currency exchange contracts (43 ) — (42 ) (35 ) 2 — 2 — Energy contracts (5 ) 1 (9 ) 1 — — — — Total $ (20 ) $ 30 $ 25 $ (70 ) $ 2 $ — $ 2 $ — Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Three Months Ended September 30, Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Six Months Ended September 30, Location of Gain (Loss) Reclassified Cash flow hedging derivatives 2019 2018 2019 2018 Energy contracts (A) $ (1 ) $ — $ (2 ) $ (1 ) Cost of goods sold (B) Metal contracts (1 ) — (1 ) — Cost of goods sold (B) Metal contracts 23 27 53 — Net sales Currency exchange contracts — (5 ) (1 ) (7 ) Cost of goods sold (B) Currency exchange contracts — (1 ) — (1 ) Selling, general and administrative expenses Currency exchange contracts (4 ) (2 ) (7 ) (3 ) Net sales Currency exchange contracts (1 ) (1 ) (1 ) (1 ) Depreciation and amortization Total $ 16 $ 18 $ 41 $ (13 ) Income (loss) before taxes (4 ) (6 ) (10 ) 2 Income tax (provision) benefit $ 12 $ 12 $ 31 $ (11 ) Net gain (loss) _________________________ (A) Includes amounts related to electricity, natural gas, and diesel swaps. (B) "Cost of goods sold" is exclusive of depreciation and amortization. The following tables summarize the location and amount of gains (losses) that were reclassified from " Accumulated other comprehensive income (loss) " into earnings and the amount excluded from the assessment of effectiveness for the periods presented (in millions). Three Months Ended September 30, 2019 Six Months Ended September 30, 2019 Net Sales Cost of Goods Sold Selling, General & Administrative Expenses Depreciation and Amortization Other (Income) Expenses, Net Net Sales Cost of Goods Sold Selling, General & Administrative Expenses Depreciation and Amortization Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from AOCI into income $ 23 $ (1 ) $ — $ — $ — $ 53 $ (1 ) $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from AOCI into income $ — $ (1 ) $ — $ — $ — $ — $ (2 ) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from AOCI into income $ (4 ) $ — $ — $ (1 ) $ — $ (7 ) $ (1 ) $ — $ (1 ) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ 2 $ — $ — $ — $ — $ 2 Three Months Ended September 30, 2018 Six Months Ended September 30, 2018 Net Sales Cost of Goods Sold Selling, General & Administrative Expenses Depreciation and Amortization Other (Income) Expenses, Net Net Sales Cost of Goods Sold Selling, General & Administrative Expenses Depreciation and Amortization Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from AOCI into income $ 27 $ — $ — $ — $ — $ — $ — $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from AOCI into income $ — $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from AOCI into income $ (2 ) $ (5 ) $ (1 ) $ (1 ) $ — $ (3 ) $ (7 ) $ (1 ) $ (1 ) $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables summarize the change in the components o f Accumulated other comprehensive income (loss) , net of tax and excluding "Noncontrolling interest", for the periods presented (in millions). Currency Translation (A) Cash Flow Hedges (B) Postretirement Benefit Plans Total Balance as of June 30, 2019 $ (231 ) $ (8 ) $ (244 ) $ (483 ) Other comprehensive income (loss) before reclassifications (86 ) (13 ) 5 (94 ) Amounts reclassified from AOCI, net — (12 ) 6 (6 ) Net current-period other comprehensive income (loss) (86 ) (25 ) 11 (100 ) Balance as of September 30, 2019 $ (317 ) $ (33 ) $ (233 ) $ (583 ) Currency Translation (A) Cash Flow Hedges (B) Postretirement Benefit Plans Total Balance as of June 30, 2018 $ (182 ) $ (21 ) $ (227 ) $ (430 ) Other comprehensive income (loss) before reclassifications (1 ) 21 (1 ) 19 Amounts reclassified from AOCI, net — (12 ) 7 (5 ) Net current-period other comprehensive income (loss) (1 ) 9 6 14 Balance as of September 30, 2018 $ (183 ) $ (12 ) $ (221 ) $ (416 ) Currency Translation (A) Cash Flow Hedges (B) Postretirement Benefit Plans Total Balance as of March 31, 2019 $ (236 ) $ (22 ) $ (248 ) $ (506 ) Other comprehensive income (loss) before reclassifications (81 ) 20 3 (58 ) Amounts reclassified from AOCI, net — (31 ) 12 (19 ) Net current-period other comprehensive income (loss) (81 ) (11 ) 15 (77 ) Balance as of September 30, 2019 $ (317 ) $ (33 ) $ (233 ) $ (583 ) Currency Translation (A) Cash Flow Hedges (B) Postretirement Benefit Plans Total Balance as of March 31, 2018 $ (65 ) $ 31 $ (227 ) $ (261 ) Amounts reclassified from AOCI, net - due to adoption of accounting standard updates — (3 ) (13 ) (16 ) Balance as of April 1, 2018 $ (65 ) $ 28 $ (240 ) $ (277 ) Other comprehensive income (loss) before reclassifications (118 ) (51 ) 5 (164 ) Amounts reclassified from AOCI, net — 11 14 25 Net current-period other comprehensive income (loss) (118 ) (40 ) 19 (139 ) Balance as of September 30, 2018 $ (183 ) $ (12 ) $ (221 ) $ (416 ) _________________________ (A) For additional information on our cash flow hedges, see Note 12 — Financial Instruments and Commodity Contracts . (B) For additional information on our postretirement benefit plans, see Note 10 — Postretirement Benefit Plans . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We record certain assets and liabilities, primarily derivative instruments, on our consolidated balance sheets at fair value. We also disclose the fair values of certain financial instruments, including debt and loans receivable, which are not recorded at fair value. Our objective in measuring fair value is to estimate an exit price in an orderly transaction between market participants on the measurement date. We consider factors such as liquidity, bid/offer spreads and nonperformance risk, including our own nonperformance risk, in measuring fair value. We use observable market inputs wherever possible. To the extent observable market inputs are not available, our fair value measurements will reflect the assumptions we used. We grade the level of the inputs and assumptions used according to a three-tier hierarchy: Level 1 - Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities we have the ability to access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Unobservable inputs for which there is little or no market data, which require us to develop our own assumptions based on the best information available as what market participants would use in pricing the asset or liability. The following section describes the valuation methodologies we used to measure our various financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified. Derivative Contracts For certain derivative contracts with fair values based upon trades in liquid markets, such as aluminum, foreign exchange, natural gas and diesel fuel forward contracts and options, valuation model inputs can generally be verified and valuation techniques do not involve significant judgment. The fair values of such financial instruments are generally classified within Level 2 of the fair value hierarchy. The majority of our derivative contracts are valued using industry-standard models with observable market inputs as their basis, such as time value, forward interest rates, volatility factors, and current (spot) and forward market prices. We generally classify these instruments within Level 2 of the valuation hierarchy. Such derivatives include interest rate swaps, cross-currency swaps, foreign currency contracts, aluminum and copper forward contracts, natural gas and diesel fuel forward contracts. We classify derivative contracts that are valued based on models with significant unobservable market inputs as Level 3 of the valuation hierarchy. Our electricity swap, which is our only Level 3 derivative contract, represents an agreement to buy electricity at a fixed price at our Oswego, New York facility. Forward prices are not observable for this market, so we must make certain assumptions based on available information we believe to be relevant to market participants. We use observable forward prices for a geographically nearby market and adjust for 1) historical spreads between the cash prices of the two markets, and 2) historical spreads between retail and wholesale prices. For the electricity swap, the average forward price at September 30, 2019 , estimated using the method described above, was $40 per megawatt hour, which represented an approximately $2 premium over forward prices in the nearby observable market. The actual rate from the most recent swap settlement was approximately $30 per megawatt hour. Each $1 per megawatt hour decline in price decreases the valuation of the electricity swap by $1 million . For Level 2 and 3 of the fair value hierarchy, where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations (nonperformance risk). We regularly monitor these factors along with significant market inputs and assumptions used in our fair value measurements and evaluate the level of the valuation input according to the fair value hierarchy. This may result in a transfer between levels in the hierarchy from period to period. As of September 30, 2019 and March 31, 2019 , we did not have any Level 1 derivative contracts. No amounts were transferred between levels in the fair value hierarchy. All of the Company's derivative instruments are carried at fair value in the statements of financial position prior to considering master netting agreements. The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as of September 30, 2019 and March 31, 2019 (in millions). The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. September 30, 2019 March 31, 2019 Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 75 $ (52 ) $ 45 $ (45 ) Currency exchange contracts 26 (55 ) 27 (44 ) Energy contracts — (6 ) — (2 ) Total level 2 instruments $ 101 $ (113 ) $ 72 $ (91 ) Level 3 instruments: Energy contracts — (5 ) — (3 ) Total level 3 instruments $ — $ (5 ) $ — $ (3 ) Total gross $ 101 $ (118 ) $ 72 $ (94 ) Netting adjustment (A) $ (45 ) $ 45 $ (36 ) $ 36 Total net $ 56 $ (73 ) $ 36 $ (58 ) _________________________ (A) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions with the same counterparties. There were no unrealized gains (losses) recognized in " Other (income) expenses, net " for the three and six months ended September 30, 2019 related to Level 3 financial instrument. The following table presents a reconciliation of fair value activity for Level 3 derivative contracts (in millions). Level 3 – Derivative Instruments (A) Balance as of March 31, 2019 $ (3 ) Unrealized/realized gain (loss) included in earnings (B) 2 Unrealized/realized gain (loss) included in AOCI (C) (3 ) Settlements (B) (1 ) Balance as of September 30, 2019 $ (5 ) _________________________ (A) Represents net derivative liabilities. (B) Included in “ Other (income) expenses, net .” (C) Included in "Net change in fair value of effective portion of cash flow hedges." Financial Instruments Not Recorded at Fair Value The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis (in millions). The table excludes short-term financial assets and liabilities for which we believe carrying value approximates fair value. We value long-term debt using Level 2 inputs. Valuations are based on either market and/or broker ask prices when available or on a standard credit adjusted discounted cash flow model using market observable inputs. September 30, 2019 March 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Liabilities Total debt — third parties (excluding short-term borrowings) $ 4,357 $ 4,582 $ 4,347 $ 4,472 |
Other Expense (Income), Net
Other Expense (Income), Net | 6 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | OTHER (INCOME) EXPENSES, NET “ Other (income) expenses, net ” is comprised of the following (in millions). Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Currency (gains) losses, net (A) $ 1 $ — $ 2 $ — Unrealized (gains) losses on change in fair value of derivative instruments, net (B) (3 ) (1 ) (9 ) 3 Realized (gains) losses on change in fair value of derivative instruments, net (B) 1 (13 ) 8 1 (Gain) loss on sale of assets, net (1 ) (1 ) (2 ) 2 Loss on Brazilian tax litigation, net (C) 1 1 1 1 Interest income (3 ) (2 ) (6 ) (5 ) Non-operating net periodic benefit cost 8 8 15 16 Other, net (2 ) 2 (3 ) 5 Other (income) expenses, net $ 2 $ (6 ) $ 6 $ 23 _________________________ (A) See Note 11 — Currency (Gains) Losses for further details. (B) See Note 12 — Financial Instruments and Commodity Contracts for further details. (C) See Note 17 — Commitments and Contingencies for further details. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three and six months ended September 30, 2019 , we had effective tax rates of 27% and 30% , respectively. For the three and six months ended September 30, 2018 , we had effective tax rates of 36% and 32% , respectively. These tax rates are primarily due to the results of operations taxed at foreign statutory tax rates that differ from the 25% Canadian tax rate, including withholding taxes, also driven by changes in valuation allowances and certain other non-deductible expenses, offset by tax credits. As of September 30, 2019 , we had a net deferred tax liability of $112 million . This amount included gross deferred tax assets of approximately $1.1 billion and a valuation allowance of $744 million . It is reasonably possible that our estimates of future taxable income may change within the next twelve months resulting in a change to the valuation allowance in one or more jurisdictions. Tax authorities continue to examine certain of our tax filings for fiscal years 2005 through 2018 . As a result of audit settlements, judicial decisions, the filing of amended tax returns or the expiration of statutes of limitations, our reserves for unrecognized tax benefits, as well as reserves for interest and penalties, may decrease in the next twelve months by an amount up to approximately $5 million . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We are party to, and may in the future be involved in, or subject to, disputes, claims and proceedings arising in the ordinary course of our business, including some we assert against others, such as environmental, health and safety, product liability, employee, tax, personal injury and other matters. For certain matters in which the Company is involved for which a loss is reasonably possible, we are unable to estimate a loss. For certain other matters for which a loss is reasonably possible and the loss is estimable, we have estimated the aggregated range of loss as $0 to $75 million . This estimated aggregate range of reasonably possible losses is based upon currently available information. The Company’s estimates involve significant judgment, and therefore, the estimate will change from time to time and actual losses may differ from the current estimate. We review the status of, and estimated liability related to, pending claims and civil actions on a quarterly basis. The evaluation model includes all asserted and unasserted claims that can be reasonably identified, including claims relating to our responsibility for compliance with environmental, health and safety laws and regulations in the jurisdictions in which we operate or formerly operated. The estimated costs in respect of such reported liabilities are not offset by amounts related to insurance or indemnification arrangements unless otherwise noted. Environmental Matters We have established liabilities based on our estimates for currently anticipated costs associated with environmental matters. We estimate that the costs related to our environmental liabilities as of September 30, 2019 and March 31, 2019 were approximately $9 million . Of the total $9 million at September 30, 2019 , $7 million was associated with restructuring actions and the remaining $2 million is associated with undiscounted environmental clean-up costs. As of September 30, 2019 , $5 million is included in "Accrued expenses and other current liabilities" and the remaining is within "Other long-term liabilities" in our accompanying condensed consolidated balance sheets. Brazilian Tax Litigation Under a federal tax dispute settlement program established by the Brazilian government, we have settled several disputes with Brazil’s tax authorities regarding various forms of manufacturing taxes and social security contributions. Total settlement liabilities as of September 30, 2019 and March 31, 2019 were $37 million and $44 million , respectively. As of September 30, 2019 , $7 million is included in "Accrued expenses and other current liabilities" and the remaining is within "Other long-term liabilities" in our accompanying condensed consolidated balance sheets. In addition to the disputes we have settled under the federal tax dispute settlement program, we are involved in several other unresolved tax and other legal claims in Brazil. Total liabilities for other disputes and claims were $23 million as of September 30, 2019 and March 31, 2019 . As of September 30, 2019 , $2 million is included in "Accrued expenses and other current liabilities" and the remaining is within "Other long-term liabilities" in our accompanying condensed consolidated balance sheets. Additionally, we have included in the range of reasonably possible losses disclosed above, any unresolved tax disputes or other contingencies for which a loss is reasonably possible and estimable. The interest cost recorded on these settlement liabilities, partially offset by interest earned on the cash deposit is reported as "Loss on Brazilian tax litigation, net" in Note 15 — Other (Income) Expenses . For additional information, please refer to our Form 10-K for the year ended March 31, 2019 . |
Segment, Major Customer and Maj
Segment, Major Customer and Major Supplier Information | 6 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION | SEGMENT, MAJOR CUSTOMER AND MAJOR SUPPLIER INFORMATION Segment Information Due in part to the regional nature of supply and demand of aluminum rolled products and to best serve our customers, we manage our activities based on geographical areas and are organized under four operating segments: North America, Europe, Asia and South America. All of our segments manufacture aluminum sheet and light gauge products. The following is a description of our operating segments: North America. Headquartered in Atlanta, Georgia, this segment operates eight plants, including two fully dedicated recycling facilities and two facilities with recycling operations, in two countries. Europe. Headquartered in Küsnacht, Switzerland, this segment operates ten plants, including two fully dedicated recycling facilities and three facilities with recycling operations, in four countries. Asia. Headquartered in Seoul, South Korea, this segment operates three plants, including two facilities with recycling operations, in two countries. South America. Headquartered in Sao Paulo, Brazil, this segment comprises power generation operations, and operates two plants, including a facility with recycling operations, in Brazil. Net sales and expenses are measured in accordance with the policies and procedures described in Note 1 — Business and Summary of Significant Accounting Policies shown in our Form 10-K for the year ended March 31, 2019 . We measure the profitability and financial performance of our operating segments based on segment income. Segment income provides a measure of our underlying segment results that is in line with our approach to risk management. We define segment income as earnings before (a) “depreciation and amortization”; (b) “interest expense and amortization of debt issuance costs”; (c) “interest income”; (d) unrealized gains (losses) on change in fair value of derivative instruments, net, except for foreign currency remeasurement hedging activities, which are included in segment income; (e) impairment of goodwill; (f) gain or loss on extinguishment of debt; (g) noncontrolling interest's share; (h) adjustments to reconcile our proportional share of segment income from non-consolidated affiliates to income as determined on the equity method of accounting; (i) “restructuring and impairment, net”; (j) gains or losses on disposals of property, plant and equipment and businesses, net; (k) other costs, net; (l) litigation settlement, net of insurance recoveries; (m) sale transaction fees; (n) provision or benefit for taxes on income (loss); (o) cumulative effect of accounting change, net of tax; (p) metal price lag; and (q) business acquisition and other integration related costs. The tables below show selected segment financial information (in millions). The “Eliminations and Other” column in the table below includes eliminations and functions that are managed directly from our corporate office that have not been allocated to our operating segments, as well as the adjustments for proportional consolidation, and eliminations of intersegment “Net sales.” The financial information for our segments includes the results of our affiliates on a proportionately consolidated basis, which is consistent with the way we manage our business segments. In order to reconcile the financial information for the segments shown in the tables below to the relevant U.S. GAAP based measures, we must adjust proportional consolidation of each line item. The “Eliminations and Other” in “Net sales - third party” includes the net sales attributable to our joint venture party, Tri-Arrows, for our Logan affiliate because we consolidate 100% of the Logan joint venture for U.S. GAAP, but we manage our Logan affiliate on a proportionately consolidated basis. See Note 6 — Consolidation and Note 7 — Investment in and Advances to Non-Consolidated Affiliates and Related Party Transactions for further information about these affiliates. Additionally, we eliminate intersegment sales and intersegment income for reporting on a consolidated basis. Selected Segment Financial Information September 30, 2019 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliates $ — $ 468 $ 300 $ — $ — $ 768 Total assets $ 3,261 $ 2,893 $ 1,589 $ 1,566 $ 268 $ 9,577 March 31, 2019 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliates $ — $ 478 $ 314 $ — $ — $ 792 Total assets $ 2,918 $ 2,872 $ 1,717 $ 1,831 $ 225 $ 9,563 Selected Operating Results Three Months Ended September 30, 2019 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 1,070 $ 770 $ 478 $ 457 $ 76 $ 2,851 Net sales-intersegment — 38 3 13 (54 ) — Net sales $ 1,070 $ 808 $ 481 $ 470 $ 22 $ 2,851 Depreciation and amortization $ 38 $ 28 $ 15 $ 17 $ (10 ) $ 88 Income tax provision $ 11 $ (3 ) $ 5 $ 28 $ 4 $ 45 Capital expenditures $ 72 $ 13 $ 34 $ 19 $ — $ 138 Selected Operating Results Three Months Ended September 30, 2018 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 1,211 $ 832 $ 517 $ 512 $ 64 $ 3,136 Net sales-intersegment 1 31 8 6 (46 ) — Net sales $ 1,212 $ 863 $ 525 $ 518 $ 18 $ 3,136 Depreciation and amortization $ 37 $ 29 $ 16 $ 16 $ (12 ) $ 86 Income tax provision $ 18 $ 4 $ 6 $ 33 $ 3 $ 64 Capital expenditures $ 28 $ 14 $ 9 $ 11 $ (2 ) $ 60 Selected Operating Results Six Months Ended September 30, 2019 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 2,186 $ 1,522 $ 990 $ 924 $ 154 $ 5,776 Net sales-intersegment — 84 5 25 (114 ) — Net sales $ 2,186 $ 1,606 $ 995 $ 949 $ 40 $ 5,776 Depreciation and amortization $ 76 $ 57 $ 31 $ 33 $ (21 ) $ 176 Income tax provision $ 28 $ — $ 13 $ 55 $ 12 $ 108 Capital expenditures $ 164 $ 23 $ 72 $ 38 $ 3 $ 300 Selected Operating Results Six Months Ended September 30, 2018 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 2,332 $ 1,685 $ 1,059 $ 1,030 $ 127 $ 6,233 Net sales-intersegment 1 46 16 16 (79 ) — Net sales $ 2,333 $ 1,731 $ 1,075 $ 1,046 $ 48 $ 6,233 Depreciation and amortization $ 74 $ 56 $ 33 $ 33 $ (24 ) $ 172 Income tax provision $ 32 $ 8 $ 12 $ 57 $ 8 $ 117 Capital expenditures $ 50 $ 30 $ 11 $ 21 $ 2 $ 114 The table below displays the reconciliation from “ Net income attributable to our common shareholder ” to segment income from reportable segments (in millions). Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Net income attributable to our common shareholder $ 123 $ 116 $ 250 $ 253 Noncontrolling interest — — — — Income tax provision 45 64 108 117 Depreciation and amortization 88 86 176 172 Interest expense and amortization of debt issuance costs 61 68 126 134 Adjustment to reconcile proportional consolidation 14 15 29 31 Unrealized (gains) losses on change in fair value of derivative instruments, net (3 ) (1 ) (9 ) 3 Realized (gains) losses on derivative instruments not included in segment income 1 (1 ) 3 (1 ) Restructuring and impairment, net 32 — 33 1 (Gain) loss on sale of fixed assets (1 ) (1 ) (2 ) 2 Metal price lag 5 (1 ) 7 (34 ) Business acquisition and other integration related costs 12 8 29 10 Other, net (3 ) 2 (4 ) 1 Total of reportable segments $ 374 $ 355 $ 746 $ 689 "Business acquisition and other integration related costs" are primarily legal and professional fees associated with our proposed acquisition of Aleris. The acquisition is subject to closing conditions and regulatory approvals. “ Adjustment to reconcile proportional consolidation ” relates to depreciation, amortization and income taxes of our equity method investments. Income taxes related to our equity method investments are reflected in the carrying value of the investment and not in our consolidated “Income tax provision.” “ Realized (gains) losses on derivative instruments not included in segment income ” represents foreign currency derivatives not related to operations. " Other, net " is related primarily to losses on certain indirect tax expenses in Brazil and interest income. The table below displays segment income from reportable segments by region (in millions). Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 North America $ 171 $ 151 $ 341 $ 270 Europe 60 59 113 122 Asia 46 47 99 102 South America 97 98 193 195 Total of reportable segments $ 374 $ 355 $ 746 $ 689 Information about Product Sales, Major Customers and Primary Supplier Product Sales The following table displays our Net sales by value stream (in millions). Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Can $ 1,591 $ 1,651 $ 3,178 $ 3,340 Automotive 672 771 1,381 1,497 Specialty (and other) 588 714 1,217 1,396 Net sales $ 2,851 $ 3,136 $ 5,776 $ 6,233 Major Customers The following table displays net sales to customers representing 10% or more of our total “Net sales.” Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Ball 23 % 22 % 22 % 23 % Ford 10 % 11 % 10 % 10 % Primary Supplier Rio Tinto (RT) is our primary supplier of metal inputs, including prime and sheet ingot. The table below shows our purchases from RT as a percentage of our total combined metal purchases. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Purchases from RT as a percentage of total combined metal purchases 11 % 10 % 11 % 10 % |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business We produce aluminum sheet and light gauge products for use in the packaging market, which includes beverage and food can and foil products, as well as for use in the automotive, transportation, electronics, architectural and industrial product markets. We have recycling operations in many of our plants to recycle post-consumer aluminum, such as used-beverage cans and post-industrial aluminum, such as class scrap. As of September 30, 2019 , we had manufacturing operations in nine countries on four continents: North America, South America, Asia and Europe, through 23 operating facilities, including recycling operations in twelve of these plants. The March 31, 2019 condensed consolidated balance sheet data was derived from the March 31, 2019 audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes in our Form 10-K for the year-ended March 31, 2019 filed with the United States Securities and Exchange Commission (SEC) on May 8, 2019 . Management believes that all adjustments necessary for the fair statement of results, consisting of normally recurring items, have been included in the unaudited condensed consolidated financial statements for the interim periods presented. |
Consolidation Policy | Consolidation Policy Our condensed consolidated financial statements include the assets, liabilities, revenues and expenses of all wholly-owned subsidiaries, majority-owned subsidiaries over which we exercise control and entities in which we have a controlling financial interest or are deemed to be the primary beneficiary. We eliminate all significant intercompany accounts and transactions from our condensed consolidated financial statements. We use the equity method to account for our investments in entities that we do not control, but where we have the ability to exercise significant influence over operating and financial policies. Consolidated "Net income attributable to our common shareholder" includes our share of net income (loss) of these entities. |
Restricted Cash Policy | Restricted Cash Policy Restricted cash is comprised of cash deposits for employee benefits and is disclosed on the condensed consolidated statement of cash flows. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of our condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The principal areas of judgment relate to (1) the fair value of derivative financial instruments; (2) impairment of goodwill; (3) impairment of long lived assets and other intangible assets; (4) impairment and assessment of consolidation of equity investments; (5) actuarial assumptions related to pension and other postretirement benefit plans; (6) tax uncertainties and valuation allowances; and (7) assessment of loss contingencies, including environmental and litigation liabilities. Future events and their effects cannot be predicted with certainty, and accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts to assist in our evaluations. Actual results could differ from the estimates we have used. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards Standard Adoption Description Disclosure Impact ASU 2019-07, Codification Updates to SEC Sections (Issued July 2019) July 1, 2019 The standard provides various codification updates and improvements to address comments received. The adoption of this standard did not have an impact on the condensed consolidated financial statements. Our condensed consolidated statement of shareholder's equity now discloses current and prior period quarter-to-date activity as required by the ASU. ASU 2016-02, Leases (Topic 842) along with additional technical improvements, practical expedients, and clarifications since issued. (Issued February 2016) April 1, 2019 The standard requires organizations that lease assets to recognize assets and liabilities for the rights and obligations created by the leases on balance sheet. The standard requires qualitative and quantitative disclosures to help investors and financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. We recognized right-of-use assets and lease liabilities on our consolidated balance sheets with no impact to the opening balance of retained earnings. The adoption of this standard did not have a material effect on the condensed consolidated statement of operations or the condensed consolidated statement of cash flows. See Note 5 — Leases for further details on the adoption of this standard. ASU 2018-09, Codification Improvements (Issued July 2018) April 1, 2019 The standard provides various codification updates and improvements to address comments received. The adoption of this standard did not have an impact on the condensed consolidated financial statements and disclosures. ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Issued October 2018) April 1, 2019 The standard permits the use of the OIS based on the SOFR as a U.S. benchmark interest rate for purposes of hedge accounting under Topic 815 as requested by the Federal Reserve Board during deliberations leading to the issuance of ASU 2017-12. The FASB recognized that although the OIS rate based on SOFR is not yet widely recognized and quoted within the U.S. financial market, the attributes of the repo rates underlying the calculation of SOFR are recognized. The adoption of this standard did not have an impact on the condensed consolidated financial statements and disclosures. The Company does not currently have any interest rate derivative instruments, but is currently evaluating the potential future impact of this standard. ASU 2018-02, Income Statement-Reporting Comprehensive . (Issued February 2018) April 1, 2018 This standard provides an option to reclassify stranded tax effects within Accumulated other comprehensive income (loss) (AOCI) to Retained earnings due to the U.S. federal corporate income tax rate change in the U.S. Tax Cuts and Jobs Act of 2017 (the “Act”). We reclassified $16 million into retained earnings of our common shareholder from AOCI. This reclassification consisted of deferred taxes originally recorded in AOCI at rates that exceeded the newly enacted U.S. federal corporate tax rate. There was no impact to net income. Certain prior period amounts have been adjusted as a result of the adoption of this standard. ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Asset Transfers of Assets Other than Inventory (Issued October 2016) April 1, 2018 This standard eliminates the exception for all intra-entity sales of assets other than inventory. It requires the tax effect of intra-entity sales of assets other than inventory to be recognized currently which will impact Novelis’ effective tax rate. The changes require the current and deferred income tax consequences of the intra-entity transfer to be recorded when the transaction occurs. We adopted this standard on a modified retrospective basis and the cumulative effect of the change on retained earnings is $36 million with a corresponding impact to deferred tax balances. Certain prior period amounts have been adjusted as a result of the adoption of this standard. Recently Issued Accounting Standards (Not yet adopted) Standard Adoption Description Disclosure Impact ASU 2019-04, Codification Improvements: Topic 326: Financial Instruments - Credit Losses, Topic 815: Derivatives and Hedging, and Topic 825: Financial Instruments Various The standard provides various codification updates and improvements to address comments received. The Company is currently evaluating the impact of this standard. ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities (Issued October 2018) April 1, 2020 This standard eliminates the requirement that entities consider indirect interests held through related parties under common control in their entirety when assessing whether a decision-making fee is a variable interest. Instead, the reporting entity must consider such indirect interests on a proportionate basis. The Company is currently evaluating the impact of this standard. ASU 2018-15, Intangibles-Goodwill and Other Internal-Use Software (Topic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that Is a Service Contract (Issued August 2018) April 1, 2020 This standard requires capitalization of implementation costs incurred in a hosting arrangement that is a service contract. This change will better align with requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected. The Company is currently evaluating the impact of this standard. ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (Issued August 2018) April 1, 2020 This standard added requirements for new disclosures such as requiring a narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period and also an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by ASC 715. Further, the standard removes some currently required disclosures such as (a) the requirement (for public entities) to disclose the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits and (b) the amounts in accumulated other comprehensive income "OCI" expected to be recognized in net periodic benefit costs over the next fiscal year. The Company is currently evaluating the impact of this standard. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Issued January 2017) April 1, 2020 This standard removes Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. Under the simplified model, a goodwill impairment is calculated as the difference between the carrying amount of the reporting unit and its fair value, but not to exceed the carrying amount of goodwill allocated to that reporting unit. This standard will need to be considered each time Novelis performs an assessment of goodwill for impairment under the quantitative test. The Company is currently evaluating the impact of this standard. ASU 2016-13, Financial Instrument-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments along with additional technical improvements and clarifications since issued. (Issued June 2016) April 1, 2020 The standard provides financial statement users with more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The “current expected credit loss” (CECL) model requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. The Company is currently evaluating the impact of this standard. |
Revenue From Contracts With Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company's contracts with customers are comprised of purchase orders along with standard terms and conditions. These contracts with customers typically consist of the manufacture of products which represent single performance obligations that are satisfied upon transfer of control of the product to the customer at a point in time. Transfer of control is assessed based on alternative use of the products we produce and our enforceable right to payment for performance to date under the contract terms. Transfer of control and revenue recognition generally occur upon shipment or delivery of the product, which is when title, ownership and risk of loss pass to the customer and is based on the applicable shipping terms. The shipping terms vary across all businesses and depend on the product, the country of origin, and the type of transportation (truck, train, or vessel). The length of payment terms can vary per contract but none extend beyond one year. Revenue is recognized net of any volume rebates or other incentives. We disaggregate revenue from contracts with customers on a geographic basis based on our segment view. This disaggregation also achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. We manage our activities on the basis of geographical regions and are organized under four operating segments: North America, South America, Asia and Europe. See Note 18 — Segment, Major Customer and Major Supplier Information for further information about our segment revenue |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Standard Adoption Description Disclosure Impact ASU 2019-07, Codification Updates to SEC Sections (Issued July 2019) July 1, 2019 The standard provides various codification updates and improvements to address comments received. The adoption of this standard did not have an impact on the condensed consolidated financial statements. Our condensed consolidated statement of shareholder's equity now discloses current and prior period quarter-to-date activity as required by the ASU. ASU 2016-02, Leases (Topic 842) along with additional technical improvements, practical expedients, and clarifications since issued. (Issued February 2016) April 1, 2019 The standard requires organizations that lease assets to recognize assets and liabilities for the rights and obligations created by the leases on balance sheet. The standard requires qualitative and quantitative disclosures to help investors and financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. We recognized right-of-use assets and lease liabilities on our consolidated balance sheets with no impact to the opening balance of retained earnings. The adoption of this standard did not have a material effect on the condensed consolidated statement of operations or the condensed consolidated statement of cash flows. See Note 5 — Leases for further details on the adoption of this standard. ASU 2018-09, Codification Improvements (Issued July 2018) April 1, 2019 The standard provides various codification updates and improvements to address comments received. The adoption of this standard did not have an impact on the condensed consolidated financial statements and disclosures. ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Issued October 2018) April 1, 2019 The standard permits the use of the OIS based on the SOFR as a U.S. benchmark interest rate for purposes of hedge accounting under Topic 815 as requested by the Federal Reserve Board during deliberations leading to the issuance of ASU 2017-12. The FASB recognized that although the OIS rate based on SOFR is not yet widely recognized and quoted within the U.S. financial market, the attributes of the repo rates underlying the calculation of SOFR are recognized. The adoption of this standard did not have an impact on the condensed consolidated financial statements and disclosures. The Company does not currently have any interest rate derivative instruments, but is currently evaluating the potential future impact of this standard. ASU 2018-02, Income Statement-Reporting Comprehensive . (Issued February 2018) April 1, 2018 This standard provides an option to reclassify stranded tax effects within Accumulated other comprehensive income (loss) (AOCI) to Retained earnings due to the U.S. federal corporate income tax rate change in the U.S. Tax Cuts and Jobs Act of 2017 (the “Act”). We reclassified $16 million into retained earnings of our common shareholder from AOCI. This reclassification consisted of deferred taxes originally recorded in AOCI at rates that exceeded the newly enacted U.S. federal corporate tax rate. There was no impact to net income. Certain prior period amounts have been adjusted as a result of the adoption of this standard. ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Asset Transfers of Assets Other than Inventory (Issued October 2016) April 1, 2018 This standard eliminates the exception for all intra-entity sales of assets other than inventory. It requires the tax effect of intra-entity sales of assets other than inventory to be recognized currently which will impact Novelis’ effective tax rate. The changes require the current and deferred income tax consequences of the intra-entity transfer to be recorded when the transaction occurs. We adopted this standard on a modified retrospective basis and the cumulative effect of the change on retained earnings is $36 million with a corresponding impact to deferred tax balances. Certain prior period amounts have been adjusted as a result of the adoption of this standard. Recently Issued Accounting Standards (Not yet adopted) Standard Adoption Description Disclosure Impact ASU 2019-04, Codification Improvements: Topic 326: Financial Instruments - Credit Losses, Topic 815: Derivatives and Hedging, and Topic 825: Financial Instruments Various The standard provides various codification updates and improvements to address comments received. The Company is currently evaluating the impact of this standard. ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities (Issued October 2018) April 1, 2020 This standard eliminates the requirement that entities consider indirect interests held through related parties under common control in their entirety when assessing whether a decision-making fee is a variable interest. Instead, the reporting entity must consider such indirect interests on a proportionate basis. The Company is currently evaluating the impact of this standard. ASU 2018-15, Intangibles-Goodwill and Other Internal-Use Software (Topic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that Is a Service Contract (Issued August 2018) April 1, 2020 This standard requires capitalization of implementation costs incurred in a hosting arrangement that is a service contract. This change will better align with requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected. The Company is currently evaluating the impact of this standard. ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (Issued August 2018) April 1, 2020 This standard added requirements for new disclosures such as requiring a narrative description of the reasons for significant gains and losses affecting the benefit obligation for the period and also an explanation of any other significant changes in the benefit obligation or plan assets that are not otherwise apparent in the other disclosures required by ASC 715. Further, the standard removes some currently required disclosures such as (a) the requirement (for public entities) to disclose the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits and (b) the amounts in accumulated other comprehensive income "OCI" expected to be recognized in net periodic benefit costs over the next fiscal year. The Company is currently evaluating the impact of this standard. ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Issued January 2017) April 1, 2020 This standard removes Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. Under the simplified model, a goodwill impairment is calculated as the difference between the carrying amount of the reporting unit and its fair value, but not to exceed the carrying amount of goodwill allocated to that reporting unit. This standard will need to be considered each time Novelis performs an assessment of goodwill for impairment under the quantitative test. The Company is currently evaluating the impact of this standard. ASU 2016-13, Financial Instrument-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments along with additional technical improvements and clarifications since issued. (Issued June 2016) April 1, 2020 The standard provides financial statement users with more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The “current expected credit loss” (CECL) model requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. The Company is currently evaluating the impact of this standard. |
Restructuring and Impairment,_2
Restructuring and Impairment, Net (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Liability Activity | The following table summarizes our restructuring liability activity and other impairment charges (in millions). Total restructuring liabilities Other restructuring charges (A) Total restructuring charges Other impairments (B) Total and impairments, net Balance as of March 31, 2019 $ 17 Fiscal 2020 Activity: Expenses 22 11 $ 33 — $ 33 Cash payments (2 ) Foreign currency (1 ) Balance as of September 30, 2019 $ 36 ____________________ (A) Other restructuring charges include restructuring related impairments and period expenses that were not recorded through the restructuring liability. (B) Other impairment charges not related to restructuring activities. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | "Inventories" consist of the following (in millions). September 30, March 31, Finished goods $ 379 $ 354 Work in process 654 684 Raw materials 249 254 Supplies 172 168 Inventories $ 1,454 $ 1,460 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Assets and liabilities of lessee | he weighted-average remaining lease term and discount rates. Weighted-average remaining lease term (years) As of September 30, 2019 Operating leases 6.5 Finance leases 6.7 Weighted-average discount rate Operating leases 3.73% Finance leases 3.11% Leases Balance Sheet Classification September 30, 2019 Assets Operating lease right-of-use assets Other long-term assets $ 100 Finance lease assets (A) Property, plant and equipment, net 2 Total lease assets $ 102 Liabilities Current Operating lease liabilities Accrued expenses and other current liabilities $ 24 Finance lease liabilities Current portion of long-term debt — Long term Operating lease liabilities Other long-term liabilities 76 Finance lease liabilities Long-term debt, net of current portion 1 Total lease liabilities $ 101 _______ _________________ (A) Finance lease assets are recorded net of accumulated depreciation of $6 million as of September 30, 2019 . |
Schedule of lease costs | The table below presents the classification of lease related expenses or income as reported on the condensed consolidated statements of operations. Amortization of and interest on liabilities related to finance leases were less than $1 million during the three and six months ended September 30, 2019 . Sublease income was less than $1 million during the three and six months ended September 30, 2019 . Expense Type Income Statement Classification Three Months Ended September 30, 2019 Six Months Ended September 30, 2019 Operating lease costs (A) Selling, general and administrative expenses $ 13 $ 24 _______ _________________ (A) Operating lease costs include short-term leases and variable lease costs. The following table presents supplemental information on our operating leases for the six months ended September 30, 2019 (in millions). Operating and financing cash flows from finance leases were less than $1 million for the six months ended September 30, 2019 . Leased assets obtained in exchange for new operating and financing lease liabilities were $14 million for the six months ended September 30, 2019 , individually and in the aggregate. Supplemental information Six Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 27 |
Schedule of future minimum lease payments of operating leases | Future minimum lease payments as of September 30, 2019 , for our operating and finance leases having an initial or remaining non-cancelable lease term in excess of one year are as follows (in millions). Period Ending September 30, Operating leases (A) Finance leases (B) Total 2020 $ 17 $ — $ 17 2021 26 — 26 2022 19 — 19 2023 14 — 14 2024 13 — 13 Thereafter 27 1 28 Total minimum lease payments $ 116 $ 1 $ 117 Less: interest 16 — 16 Present value of lease liabilities $ 100 $ 1 $ 101 _______ _________________ (A) Operating lease payments related to options to extend lease terms that are reasonably certain of being exercised are immaterial and we do not have leases signed but not yet commenced as of September 30, 2019 . (B) Finance lease payments related to options to extend lease terms that are reasonably certain of being exercised are immaterial and we do not have leases signed but not yet commenced as of September 30, 2019 . |
Schedule of future minimum lease payments of finance leases | Future minimum lease payments as of September 30, 2019 , for our operating and finance leases having an initial or remaining non-cancelable lease term in excess of one year are as follows (in millions). Period Ending September 30, Operating leases (A) Finance leases (B) Total 2020 $ 17 $ — $ 17 2021 26 — 26 2022 19 — 19 2023 14 — 14 2024 13 — 13 Thereafter 27 1 28 Total minimum lease payments $ 116 $ 1 $ 117 Less: interest 16 — 16 Present value of lease liabilities $ 100 $ 1 $ 101 _______ _________________ (A) Operating lease payments related to options to extend lease terms that are reasonably certain of being exercised are immaterial and we do not have leases signed but not yet commenced as of September 30, 2019 . (B) Finance lease payments related to options to extend lease terms that are reasonably certain of being exercised are immaterial and we do not have leases signed but not yet commenced as of September 30, 2019 . |
Schedule of aggregate minimum lease payments under capital and operating leases | The following table sets forth the aggregate minimum lease payments under finance and operating leases (in millions). Year Ending March 31, Operating leases Finance lease obligations 2020 $ 29 $ — 2021 22 — 2022 16 — 2023 12 — 2024 10 — Thereafter 17 1 Total minimum lease payments $ 106 $ 1 Less: interest portion on finance leases — Principal obligation on finance leases $ 1 |
Consolidation (Tables)
Consolidation (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Consolidation [Abstract] | |
Schedule of variable interest entity | The following table summarizes the carrying value and classification of assets and liabilities owned by the Logan joint venture and consolidated in our condensed consolidated balance sheets (in millions). September 30, March 31, Assets Current assets Cash and cash equivalents $ 5 $ 1 Accounts receivable 14 40 Inventories 82 72 Prepaid expenses and other current assets 1 1 Total current assets $ 102 $ 114 Property, plant and equipment, net 24 29 Goodwill 12 12 Deferred income taxes 64 64 Other long-term assets 35 27 Total assets $ 237 $ 246 Liabilities Current liabilities Accounts payable $ 39 $ 43 Accrued expenses and other current liabilities 21 21 Total current liabilities $ 60 $ 64 Accrued postretirement benefits 238 245 Other long-term liabilities 1 1 Total liabilities $ 299 $ 310 |
Investment In and Advances to_2
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Summary of condensed results of operations of equity method affiliates | The following table summarizes the results of operations of our equity method affiliates in the aggregate, and the nature and amounts of significant transactions we have with our non-consolidated affiliates (in millions). The amounts in the table below are disclosed at 100% of the operating results of these affiliates. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Net sales $ 308 $ 332 $ 608 $ 650 Costs and expenses related to net sales 302 327 595 642 Income tax provision 2 2 3 3 Net income $ 4 $ 3 $ 10 $ 5 Purchases of tolling services from Alunorf (Novelis' share) $ 63 $ 65 $ 127 $ 129 |
Period-end account balances with non-consolidated affiliates, shown as related party balances | The following table describes the period-end account balances, shown as related party balances in the accompanying condensed consolidated balance sheets (in millions). We had no other material related party balances with non-consolidated affiliates. September 30, March 31, Accounts receivable-related parties $ 159 $ 164 Accounts payable-related parties $ 202 $ 175 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consisted of the following (in millions). September 30, 2019 March 31, 2019 Interest Rates (A) Principal Unamortized Carrying Value Adjustments (B) Carrying Value Principal Unamortized Carrying Value Adjustments (B) Carrying Value Third party debt: Short-term borrowings 4.19 % $ 14 $ — $ 14 $ 39 $ — $ 39 Novelis Inc. Floating rate Term Loan Facility, due June 2022 3.95 % 1,751 (28 ) 1,723 1,760 (33 ) 1,727 Novelis Corporation 5.875% Senior Notes, due September 2026 5.875 % 1,500 (17 ) 1,483 1,500 (19 ) 1,481 6.25% Senior Notes, due August 2024 6.25 % 1,150 (12 ) 1,138 1,150 (14 ) 1,136 Novelis China Bank loans, due through June 2027 (CNY 83 million) 4.90 % 12 — 12 — — — Other Finance lease obligations and other debt, due through December 2026 4.54 % 1 — 1 3 — 3 Total debt $ 4,428 $ (57 ) $ 4,371 $ 4,452 $ (66 ) $ 4,386 Less: Short-term borrowings (14 ) — (14 ) (39 ) — (39 ) Less: Current portion of long-term debt (19 ) — (19 ) (19 ) — (19 ) Long-term debt, net of current portion $ 4,395 $ (57 ) $ 4,338 $ 4,394 $ (66 ) $ 4,328 ________ _________________ (A) Interest rates are the stated rates of interest on the debt instrument (not the effective interest rate) as of September 30, 2019 , and therefore, exclude the effects of related interest rate swaps and accretion/amortization of fair value adjustments as a result of purchase accounting in connection with Hindalco's purchase of Novelis and accretion/amortization of debt issuance costs related to refinancing transactions and additional borrowings. We present stated rates of interest because they reflect the rate at which cash will be paid for future debt service. (B) Amounts include unamortized debt issuance costs, fair value adjustments and debt discounts. |
Principal repayment requirements for total debt over the next five years and thereafter | Principal repayment requirements for our total debt over the next five years and thereafter using exchange rates as of September 30, 2019 (for our debt denominated in foreign currencies) are as follows (in millions). As of September 30, 2019 Amount Short-term borrowings and current portion of long-term debt due within one year $ 33 2 years 18 3 years 1,716 4 years 1 5 years 1,152 Thereafter 1,508 Total $ 4,428 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost for all significant postretirement benefit plans | Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below (in millions). Pension Benefit Plans Other Benefit Plans Three Months Ended September 30, Three Months Ended September 30, 2019 2018 2019 2018 Service cost $ 10 $ 10 $ 3 $ 2 Interest cost 15 15 2 2 Expected return on assets (18 ) (16 ) — — Amortization — losses, net 9 8 — 1 Net periodic benefit cost (A) $ 16 $ 17 $ 5 $ 5 Pension Benefit Plans Other Benefit Plans Six Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Service cost $ 20 $ 20 $ 6 $ 4 Interest cost 30 30 4 4 Expected return on assets (36 ) (32 ) — — Amortization — losses, net 17 16 — 2 Net periodic benefit cost (A) $ 31 $ 34 $ 10 $ 10 _________________________ (A) Service cost is included within " Cost of goods sold (exclusive of depreciation and amortization) " and " Selling, general and administrative expenses " while all other cost components are recorded within " Other (income) expenses, net ." |
Contributions to employee benefit plans | We contributed the following amounts (in millions) to all plans. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Funded pension plans $ 33 $ 14 $ 38 $ 16 Unfunded pension plans 3 3 5 6 Savings and defined contribution pension plans 7 7 17 16 Total contributions $ 43 $ 24 $ 60 $ 38 |
Currency Losses (Gains) (Tables
Currency Losses (Gains) (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Foreign Currency [Abstract] | |
Currency (gains) losses included in Other (income) expense, net | The following currency (gains) losses are included in “ Other (income) expenses, net ” in the accompanying condensed consolidated statements of operations (in millions). Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 (Gain) loss on remeasurement of monetary assets and liabilities, net $ (1 ) $ — $ (6 ) $ (6 ) (Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net 2 — 8 6 Currency (gains) losses, net $ 1 $ — $ 2 $ — |
Currency losses included in AOCI, net of tax and noncontrolling interests | The following currency gains (losses) are included in “ Accumulated other comprehensive income (loss) ," net of tax and “Noncontrolling interest” in the accompanying condensed consolidated balance sheets (in millions). Six Months Ended September 30, 2019 Year Ended March 31, 2019 Cumulative currency translation adjustment — beginning of period $ (236 ) $ (65 ) Effect of changes in exchange rates (81 ) (171 ) Cumulative currency translation adjustment — end of period $ (317 ) $ (236 ) |
Financial Instruments and Com_2
Financial Instruments and Commodity Contracts (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair values of financial instruments and commodity contracts | The following tables summarize the gross fair values of our financial instruments and commodity contracts as of the periods presented (in millions). September 30, 2019 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent (A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 28 $ — $ (5 ) $ (1 ) $ 22 Currency exchange contracts 3 — (31 ) (9 ) (37 ) Energy contracts — — (5 ) (6 ) (11 ) Total derivatives designated as hedging instruments $ 31 $ — $ (41 ) $ (16 ) $ (26 ) Derivatives not designated as hedging instruments: Metal contracts 47 — (46 ) — 1 Currency exchange contracts 23 — (15 ) — 8 Total derivatives not designated as hedging instruments $ 70 $ — $ (61 ) $ — $ 9 Total derivative fair value $ 101 $ — $ (102 ) $ (16 ) $ (17 ) March 31, 2019 Assets Liabilities Net Fair Value Current Noncurrent (A) Current Noncurrent (A) Assets / (Liabilities) Derivatives designated as hedging instruments: Cash flow hedges Metal contracts $ 6 $ — $ (10 ) $ — $ (4 ) Currency exchange contracts 4 — (15 ) (1 ) (12 ) Energy contracts — — (1 ) (4 ) (5 ) Total derivatives designated as hedging instruments $ 10 $ — $ (26 ) $ (5 ) $ (21 ) Derivatives not designated as hedging instruments: Metal contracts 38 1 (34 ) (1 ) 4 Currency exchange contracts 22 1 (27 ) (1 ) (5 ) Total derivatives not designated as hedging instruments $ 60 $ 2 $ (61 ) $ (2 ) $ (1 ) Total derivative fair value $ 70 $ 2 $ (87 ) $ (7 ) $ (22 ) _________________________ (A) The noncurrent portions of derivative assets and liabilities are included in “Other long-term assets-third parties” and in “Other long-term liabilities”, respectively, in the accompanying condensed consolidated balance sheets. |
Summary of notional amount | The following table summarizes our metal notional amounts in kilotonnes (kt). One kt is 1,000 metric tonnes. September 30, March 31, Hedge type Purchase (sale) Cash flow purchases 44 — Cash flow sales (387 ) (353 ) Not designated (32 ) 15 Total, net (375 ) (338 ) |
Derivative instruments, gain (loss) recognition | The following table summarizes the gains (losses) associated with the change in fair value of derivative instruments not designated as hedges and the excluded portion of designated derivatives recognized in “ Other (income) expenses, net ” (in millions). Gains (losses) recognized in other line items in the condensed consolidated statement of operations are separately disclosed within this footnote. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Derivative instruments not designated as hedges Metal contracts $ (2 ) $ 10 $ (4 ) $ (6 ) Currency exchange contracts (2 ) 1 (8 ) (9 ) Energy contracts (A) 2 3 3 5 Gain (loss) recognized in "Other (income) expenses, net" $ (2 ) $ 14 $ (9 ) $ (10 ) Derivative instruments designated as hedges Gain (loss) recognized in "Other (income) expenses, net" (B) $ 2 $ — $ 2 $ — Total gain (loss) recognized in "Other (income) expenses, net" $ — $ 14 $ (7 ) $ (10 ) Balance sheet remeasurement currency exchange contract losses $ (2 ) $ — $ (8 ) $ (6 ) Realized gains (losses), net (1 ) 13 (8 ) (1 ) Unrealized gains (losses) on other derivative instruments, net 3 1 9 (3 ) Total gain (loss) recognized in "Other (income) expenses, net" $ — $ 14 $ (7 ) $ (10 ) _________________________ (A) Includes amounts related to diesel swaps not designated as hedges, and electricity swap settlements. (B) Amount includes: forward market premium/discount excluded from hedging relationship on designated foreign currency capital expenditure contracts; releases to income from AOCI on balance sheet remeasurement contracts. |
Summary of the impact on AOCI and earnings of derivative instruments designated as cash flow hedges | The following table summarizes the impact on AOCI and earnings of derivative instruments designated as cash flow hedges (in millions). Within the next twelve months, we expect to reclassify $2 million of losses from AOCI to earnings, before taxes. Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) “Other (Income) Expenses, net” (Ineffective and Amount of Gain (Loss) Three Months Ended September 30, Six Months Ended September 30, Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 2019 2018 2019 2018 Cash flow hedging derivatives Metal contracts $ 28 $ 29 $ 76 $ (36 ) $ — $ — $ — $ — Currency exchange contracts (43 ) — (42 ) (35 ) 2 — 2 — Energy contracts (5 ) 1 (9 ) 1 — — — — Total $ (20 ) $ 30 $ 25 $ (70 ) $ 2 $ — $ 2 $ — Gain (Loss) Reclassification Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Three Months Ended September 30, Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) Six Months Ended September 30, Location of Gain (Loss) Reclassified Cash flow hedging derivatives 2019 2018 2019 2018 Energy contracts (A) $ (1 ) $ — $ (2 ) $ (1 ) Cost of goods sold (B) Metal contracts (1 ) — (1 ) — Cost of goods sold (B) Metal contracts 23 27 53 — Net sales Currency exchange contracts — (5 ) (1 ) (7 ) Cost of goods sold (B) Currency exchange contracts — (1 ) — (1 ) Selling, general and administrative expenses Currency exchange contracts (4 ) (2 ) (7 ) (3 ) Net sales Currency exchange contracts (1 ) (1 ) (1 ) (1 ) Depreciation and amortization Total $ 16 $ 18 $ 41 $ (13 ) Income (loss) before taxes (4 ) (6 ) (10 ) 2 Income tax (provision) benefit $ 12 $ 12 $ 31 $ (11 ) Net gain (loss) _________________________ (A) Includes amounts related to electricity, natural gas, and diesel swaps. (B) "Cost of goods sold" is exclusive of depreciation and amortization. The following tables summarize the location and amount of gains (losses) that were reclassified from " Accumulated other comprehensive income (loss) " into earnings and the amount excluded from the assessment of effectiveness for the periods presented (in millions). Three Months Ended September 30, 2019 Six Months Ended September 30, 2019 Net Sales Cost of Goods Sold Selling, General & Administrative Expenses Depreciation and Amortization Other (Income) Expenses, Net Net Sales Cost of Goods Sold Selling, General & Administrative Expenses Depreciation and Amortization Other (Income) Expenses, Net Gain (loss) on cash flow hedging relationships Metal commodity contracts: Amount of gain reclassified from AOCI into income $ 23 $ (1 ) $ — $ — $ — $ 53 $ (1 ) $ — $ — $ — Energy commodity contracts: Amount of loss reclassified from AOCI into income $ — $ (1 ) $ — $ — $ — $ — $ (2 ) $ — $ — $ — Foreign exchange contracts: Amount of loss reclassified from AOCI into income $ (4 ) $ — $ — $ (1 ) $ — $ (7 ) $ (1 ) $ — $ (1 ) $ — Amount excluded from effectiveness testing recognized in earnings based on changes in fair value $ — $ — $ — $ — $ 2 $ — $ — $ — $ — $ 2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated other comprehensive income, net of tax | The following tables summarize the change in the components o f Accumulated other comprehensive income (loss) , net of tax and excluding "Noncontrolling interest", for the periods presented (in millions). Currency Translation (A) Cash Flow Hedges (B) Postretirement Benefit Plans Total Balance as of June 30, 2019 $ (231 ) $ (8 ) $ (244 ) $ (483 ) Other comprehensive income (loss) before reclassifications (86 ) (13 ) 5 (94 ) Amounts reclassified from AOCI, net — (12 ) 6 (6 ) Net current-period other comprehensive income (loss) (86 ) (25 ) 11 (100 ) Balance as of September 30, 2019 $ (317 ) $ (33 ) $ (233 ) $ (583 ) Currency Translation (A) Cash Flow Hedges (B) Postretirement Benefit Plans Total Balance as of June 30, 2018 $ (182 ) $ (21 ) $ (227 ) $ (430 ) Other comprehensive income (loss) before reclassifications (1 ) 21 (1 ) 19 Amounts reclassified from AOCI, net — (12 ) 7 (5 ) Net current-period other comprehensive income (loss) (1 ) 9 6 14 Balance as of September 30, 2018 $ (183 ) $ (12 ) $ (221 ) $ (416 ) Currency Translation (A) Cash Flow Hedges (B) Postretirement Benefit Plans Total Balance as of March 31, 2019 $ (236 ) $ (22 ) $ (248 ) $ (506 ) Other comprehensive income (loss) before reclassifications (81 ) 20 3 (58 ) Amounts reclassified from AOCI, net — (31 ) 12 (19 ) Net current-period other comprehensive income (loss) (81 ) (11 ) 15 (77 ) Balance as of September 30, 2019 $ (317 ) $ (33 ) $ (233 ) $ (583 ) Currency Translation (A) Cash Flow Hedges (B) Postretirement Benefit Plans Total Balance as of March 31, 2018 $ (65 ) $ 31 $ (227 ) $ (261 ) Amounts reclassified from AOCI, net - due to adoption of accounting standard updates — (3 ) (13 ) (16 ) Balance as of April 1, 2018 $ (65 ) $ 28 $ (240 ) $ (277 ) Other comprehensive income (loss) before reclassifications (118 ) (51 ) 5 (164 ) Amounts reclassified from AOCI, net — 11 14 25 Net current-period other comprehensive income (loss) (118 ) (40 ) 19 (139 ) Balance as of September 30, 2018 $ (183 ) $ (12 ) $ (221 ) $ (416 ) _________________________ (A) For additional information on our cash flow hedges, see Note 12 — Financial Instruments and Commodity Contracts . (B) For additional information on our postretirement benefit plans, see Note 10 — Postretirement Benefit Plans . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Derivative assets and liabilities measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy | The following table presents our derivative assets and liabilities which were measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as of September 30, 2019 and March 31, 2019 (in millions). The table below also discloses the net fair value of the derivative instruments after considering the impact of master netting agreements. September 30, 2019 March 31, 2019 Assets Liabilities Assets Liabilities Level 2 instruments: Metal contracts $ 75 $ (52 ) $ 45 $ (45 ) Currency exchange contracts 26 (55 ) 27 (44 ) Energy contracts — (6 ) — (2 ) Total level 2 instruments $ 101 $ (113 ) $ 72 $ (91 ) Level 3 instruments: Energy contracts — (5 ) — (3 ) Total level 3 instruments $ — $ (5 ) $ — $ (3 ) Total gross $ 101 $ (118 ) $ 72 $ (94 ) Netting adjustment (A) $ (45 ) $ 45 $ (36 ) $ 36 Total net $ 56 $ (73 ) $ 36 $ (58 ) _________________________ (A) Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions with the same counterparties. |
Reconciliation of fair value activity for Level 3 derivative contracts | The following table presents a reconciliation of fair value activity for Level 3 derivative contracts (in millions). Level 3 – Derivative Instruments (A) Balance as of March 31, 2019 $ (3 ) Unrealized/realized gain (loss) included in earnings (B) 2 Unrealized/realized gain (loss) included in AOCI (C) (3 ) Settlements (B) (1 ) Balance as of September 30, 2019 $ (5 ) _________________________ (A) Represents net derivative liabilities. (B) Included in “ Other (income) expenses, net .” (C) Included in "Net change in fair value of effective portion of cash flow hedges." |
Estimated fair value of certain financial instruments that are not recorded at fair value on a recurring basis | The table below presents the estimated fair value of certain financial instruments not recorded at fair value on a recurring basis (in millions). The table excludes short-term financial assets and liabilities for which we believe carrying value approximates fair value. We value long-term debt using Level 2 inputs. Valuations are based on either market and/or broker ask prices when available or on a standard credit adjusted discounted cash flow model using market observable inputs. September 30, 2019 March 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Liabilities Total debt — third parties (excluding short-term borrowings) $ 4,357 $ 4,582 $ 4,347 $ 4,472 |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | “ Other (income) expenses, net ” is comprised of the following (in millions). Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Currency (gains) losses, net (A) $ 1 $ — $ 2 $ — Unrealized (gains) losses on change in fair value of derivative instruments, net (B) (3 ) (1 ) (9 ) 3 Realized (gains) losses on change in fair value of derivative instruments, net (B) 1 (13 ) 8 1 (Gain) loss on sale of assets, net (1 ) (1 ) (2 ) 2 Loss on Brazilian tax litigation, net (C) 1 1 1 1 Interest income (3 ) (2 ) (6 ) (5 ) Non-operating net periodic benefit cost 8 8 15 16 Other, net (2 ) 2 (3 ) 5 Other (income) expenses, net $ 2 $ (6 ) $ 6 $ 23 _________________________ (A) See Note 11 — Currency (Gains) Losses for further details. (B) See Note 12 — Financial Instruments and Commodity Contracts for further details. (C) See Note 17 — Commitments and Contingencies for further details. |
Segment, Major Customer and M_2
Segment, Major Customer and Major Supplier Information (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Selected segment financial information | The following table displays our Net sales by value stream (in millions). Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Can $ 1,591 $ 1,651 $ 3,178 $ 3,340 Automotive 672 771 1,381 1,497 Specialty (and other) 588 714 1,217 1,396 Net sales $ 2,851 $ 3,136 $ 5,776 $ 6,233 The table below displays segment income from reportable segments by region (in millions). Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 North America $ 171 $ 151 $ 341 $ 270 Europe 60 59 113 122 Asia 46 47 99 102 South America 97 98 193 195 Total of reportable segments $ 374 $ 355 $ 746 $ 689 Selected Segment Financial Information September 30, 2019 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliates $ — $ 468 $ 300 $ — $ — $ 768 Total assets $ 3,261 $ 2,893 $ 1,589 $ 1,566 $ 268 $ 9,577 March 31, 2019 North America Europe Asia South America Eliminations and Other Total Investment in and advances to non–consolidated affiliates $ — $ 478 $ 314 $ — $ — $ 792 Total assets $ 2,918 $ 2,872 $ 1,717 $ 1,831 $ 225 $ 9,563 Selected Operating Results Three Months Ended September 30, 2019 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 1,070 $ 770 $ 478 $ 457 $ 76 $ 2,851 Net sales-intersegment — 38 3 13 (54 ) — Net sales $ 1,070 $ 808 $ 481 $ 470 $ 22 $ 2,851 Depreciation and amortization $ 38 $ 28 $ 15 $ 17 $ (10 ) $ 88 Income tax provision $ 11 $ (3 ) $ 5 $ 28 $ 4 $ 45 Capital expenditures $ 72 $ 13 $ 34 $ 19 $ — $ 138 Selected Operating Results Three Months Ended September 30, 2018 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 1,211 $ 832 $ 517 $ 512 $ 64 $ 3,136 Net sales-intersegment 1 31 8 6 (46 ) — Net sales $ 1,212 $ 863 $ 525 $ 518 $ 18 $ 3,136 Depreciation and amortization $ 37 $ 29 $ 16 $ 16 $ (12 ) $ 86 Income tax provision $ 18 $ 4 $ 6 $ 33 $ 3 $ 64 Capital expenditures $ 28 $ 14 $ 9 $ 11 $ (2 ) $ 60 Selected Operating Results Six Months Ended September 30, 2019 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 2,186 $ 1,522 $ 990 $ 924 $ 154 $ 5,776 Net sales-intersegment — 84 5 25 (114 ) — Net sales $ 2,186 $ 1,606 $ 995 $ 949 $ 40 $ 5,776 Depreciation and amortization $ 76 $ 57 $ 31 $ 33 $ (21 ) $ 176 Income tax provision $ 28 $ — $ 13 $ 55 $ 12 $ 108 Capital expenditures $ 164 $ 23 $ 72 $ 38 $ 3 $ 300 Selected Operating Results Six Months Ended September 30, 2018 North America Europe Asia South America Eliminations and Other Total Net sales-third party $ 2,332 $ 1,685 $ 1,059 $ 1,030 $ 127 $ 6,233 Net sales-intersegment 1 46 16 16 (79 ) — Net sales $ 2,333 $ 1,731 $ 1,075 $ 1,046 $ 48 $ 6,233 Depreciation and amortization $ 74 $ 56 $ 33 $ 33 $ (24 ) $ 172 Income tax provision $ 32 $ 8 $ 12 $ 57 $ 8 $ 117 Capital expenditures $ 50 $ 30 $ 11 $ 21 $ 2 $ 114 |
Reconciliation from income from reportable segments to "Net income attributable to out common shareholder" | The table below displays the reconciliation from “ Net income attributable to our common shareholder ” to segment income from reportable segments (in millions). Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Net income attributable to our common shareholder $ 123 $ 116 $ 250 $ 253 Noncontrolling interest — — — — Income tax provision 45 64 108 117 Depreciation and amortization 88 86 176 172 Interest expense and amortization of debt issuance costs 61 68 126 134 Adjustment to reconcile proportional consolidation 14 15 29 31 Unrealized (gains) losses on change in fair value of derivative instruments, net (3 ) (1 ) (9 ) 3 Realized (gains) losses on derivative instruments not included in segment income 1 (1 ) 3 (1 ) Restructuring and impairment, net 32 — 33 1 (Gain) loss on sale of fixed assets (1 ) (1 ) (2 ) 2 Metal price lag 5 (1 ) 7 (34 ) Business acquisition and other integration related costs 12 8 29 10 Other, net (3 ) 2 (4 ) 1 Total of reportable segments $ 374 $ 355 $ 746 $ 689 "Business acquisition and other integration related costs" are primarily legal and professional fees associated with our proposed acquisition of Aleris. The acquisition is subject to closing conditions and regulatory approvals. |
Net sales to largest customers, as a percentage of total Net sales | Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Ball 23 % 22 % 22 % 23 % Ford 10 % 11 % 10 % 10 % |
Percentage of total combined metal purchases | The table below shows our purchases from RT as a percentage of our total combined metal purchases. Three Months Ended September 30, Six Months Ended September 30, 2019 2018 2019 2018 Purchases from RT as a percentage of total combined metal purchases 11 % 10 % 11 % 10 % |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019USD ($)countrycontinentplant | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)countrycontinentplant | Sep. 30, 2018USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of countries Company operates in | country | 9 | 9 | ||
Number of continents Company operates in | continent | 4 | 4 | ||
Number of operating plants | plant | 23 | 23 | ||
Number of plants with recycling operations | plant | 12 | 12 | ||
Selling, general and administrative expenses | $ | $ (122) | $ (127) | $ (249) | $ (244) |
Business acquisition and other integration costs | $ | $ 12 | $ 8 | $ 29 | $ 10 |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Recent Accounting Policies (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reclassification into retained earnings | $ 453 | $ 203 | |||||
Reclassification out of AOCI | $ (583) | $ (483) | $ (506) | $ (416) | $ (430) | $ (277) | $ (261) |
Accounting Standards Update 2018-02 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Reclassification into retained earnings | 16 | ||||||
Reclassification out of AOCI | (16) | ||||||
Accounting Standards Update 2016-16 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect on retained earnings | 36 | ||||||
Impact to deferred tax, due to accounting for intra-entity transfers | $ 36 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Details) - segment | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Number of operating segments | 4 | 4 |
Restructuring and Impairment,_3
Restructuring and Impairment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment, net | $ 32 | $ 0 | $ 33 | $ 1 | |
Restructuring charges | 33 | ||||
Impairment charges | 11 | $ 0 | |||
Restructuring liability | 36 | 36 | $ 17 | ||
Restructuring liabilities, short-term | 27 | 27 | |||
Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 21 | ||||
Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment charges | 11 | ||||
Europe Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | 24 | 24 | |||
South America Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | 11 | 11 | |||
North America Segment [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | $ 1 | $ 1 |
Restructuring and Impairment,_4
Restructuring and Impairment, Net - Restructuring Liability Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total restructuring liabilities | ||||
Balance, beginning of period | $ 17 | |||
Expenses | 22 | |||
Cash payments | (2) | |||
Foreign currency | (1) | |||
Balance, end of period | $ 36 | 36 | ||
Other restructuring costs | 11 | |||
Total restructuring charges | 33 | |||
Other impairments | 0 | |||
Total restructuring and impairments, net | $ 32 | $ 0 | $ 33 | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 |
Schedule of inventories | ||
Finished goods | $ 379 | $ 354 |
Work in process | 654 | 684 |
Raw materials | 249 | 254 |
Supplies | 172 | 168 |
Inventories | $ 1,454 | $ 1,460 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Amortization of leased assets (less than) | $ 1 | $ 1 |
Interest on leased assets (less than) | 1 | 1 |
Sublease income (less than) | 1 | 1 |
Operating cash flows from finance leases (less than) | 1 | |
Financing cash flows from finance leases (less than) | 1 | 1 |
Leased assets obtained in exchange for new operating lease liabilities (less than) | 14 | |
Leased assets obtained in exchange for new finance lease liabilities (less than) | $ 14 | $ 14 |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Option to extend lease term | 1 year | 1 year |
Leases - Assets and Liabilities
Leases - Assets and Liabilities of Lessee (Details) $ in Millions | Sep. 30, 2019USD ($) |
Assets | |
Operating lease right-of-use assets | $ 100 |
Finance lease assets | 2 |
Total lease assets | 102 |
Current | |
Operating lease liabilities | 24 |
Finance Lease, Liability, Current | 0 |
Long term | |
Operating lease liabilities | 76 |
Finance lease liabilities | 1 |
Total lease liabilities | 101 |
Accumulated depreciation of finance lease assets | $ 6 |
Leases - Information on Lease C
Leases - Information on Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 13 | $ 24 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under 842 (Details) $ in Millions | Sep. 30, 2019USD ($) |
Operating leases | |
2020 | $ 17 |
2021 | 26 |
2022 | 19 |
2023 | 14 |
2024 | 13 |
Thereafter | 27 |
Total minimum lease payments | 116 |
Less: interest | 16 |
Present value of lease liabilities | 100 |
Finance leases | |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 1 |
Total minimum lease payments | 1 |
Less: interest | 0 |
Present value of lease liabilities | 1 |
2020 | 17 |
2021 | 26 |
2022 | 19 |
2023 | 14 |
2024 | 13 |
Thereafter | 28 |
Total minimum lease payments | 117 |
Less: interest | 16 |
Present value of lease liabilities | $ 101 |
Leases - Weighted-Average Infor
Leases - Weighted-Average Information for Leases (Details) | Sep. 30, 2019 |
Weighted-average remaining lease term (years) | |
Operating leases | 6 years 6 months 10 days |
Finance leases | 6 years 8 months 13 days |
Weighted-average discount rate | |
Operating leases | 3.73% |
Finance leases | 3.11% |
Leases - Supplemental Informati
Leases - Supplemental Information of Leases (Details) $ in Millions | 6 Months Ended |
Sep. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 27 |
Leases - Minimum Lease Payments
Leases - Minimum Lease Payments Prior to 842 (Details) $ in Millions | Sep. 30, 2019USD ($) |
Operating leases | |
2020 | $ 29 |
2021 | 22 |
2022 | 16 |
2023 | 12 |
2024 | 10 |
Thereafter | 17 |
Total minimum lease payments | 106 |
Finance lease obligations | |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 1 |
Total minimum lease payments | 1 |
Less: interest portion on finance leases | 0 |
Principal obligation on finance leases | $ 1 |
Consolidation (Details)
Consolidation (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 |
Current assets | |||
Cash and cash equivalents | $ 935 | $ 950 | $ 829 |
Inventories | 1,454 | 1,460 | |
Prepaid expenses and other current assets | 122 | 121 | |
Total current assets | 4,105 | 4,185 | |
Property, plant and equipment, net | 3,435 | 3,385 | |
Goodwill | 607 | 607 | |
Deferred income taxes | 136 | 142 | |
Other long-term assets | 203 | 101 | |
Total assets | 9,577 | 9,563 | |
Current liabilities | |||
Accounts payable | 1,827 | 1,986 | |
Accrued expenses and other current liabilities | 532 | 616 | |
Total current liabilities | 2,696 | 2,922 | |
Accrued postretirement benefits | 811 | 844 | |
Other long–term liabilities | 242 | 180 | |
Total liabilities | 8,335 | 8,497 | |
Primary Beneficiary | |||
Current assets | |||
Cash and cash equivalents | 5 | 1 | |
Accounts receivable | 14 | 40 | |
Inventories | 82 | 72 | |
Prepaid expenses and other current assets | 1 | 1 | |
Total current assets | 102 | 114 | |
Property, plant and equipment, net | 24 | 29 | |
Goodwill | 12 | 12 | |
Deferred income taxes | 64 | 64 | |
Other long-term assets | 35 | 27 | |
Total assets | 237 | 246 | |
Current liabilities | |||
Accounts payable | 39 | 43 | |
Accrued expenses and other current liabilities | 21 | 21 | |
Total current liabilities | 60 | 64 | |
Accrued postretirement benefits | 238 | 245 | |
Other long–term liabilities | 1 | 1 | |
Total liabilities | $ 299 | $ 310 | |
Logan Aluminum Inc. | Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage | 40.00% |
Investment In and Advances to_3
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable-related parties (less than) | $ 159 | $ 164 | |
Parent Company | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from related parties (less than) | 1 | $ 1 | |
Accounts receivable-related parties (less than) | 1 | $ 1 | |
Purchases of raw materials (less than) | $ 1 | $ 1 | |
Novelis Deutschland GmbH | Aluminum Norf GmbH | Corporate Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% | ||
Novelis Switzerland SA | AluInfra Services SA | Corporate Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50.00% |
Investment In and Advances to_4
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions - Summary of Results of Operations (Details) - Equity Method Investments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of the share of the condensed results of operations of equity method affiliates | ||||
Net sales | $ 308 | $ 332 | $ 608 | $ 650 |
Costs and expenses related to net sales | 302 | 327 | 595 | 642 |
Income tax provision | 2 | 2 | 3 | 3 |
Net income | 4 | 3 | 10 | 5 |
Purchases of tolling services from Alunorf (Novelis' share) | $ 63 | $ 65 | $ 127 | $ 129 |
Investment In and Advances to_5
Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions - Period End Account Balances (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 |
Related Party Transaction [Line Items] | ||
Accounts receivable-related parties | $ 159 | $ 164 |
Accounts payable-related parties | 202 | 175 |
Equity Method Investee | ||
Related Party Transaction [Line Items] | ||
Accounts receivable-related parties | $ 159 | 164 |
Accounts payable-related parties | $ 175 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 14 | $ 39 |
Long-term debt, Principal | 4,395 | 4,394 |
Long-term debt, Carrying Value | 4,357 | 4,347 |
Total debt | 4,428 | 4,452 |
Total debt, Unamortized Carrying Value Adjustment | (57) | (66) |
Total debt, carrying value | 4,371 | 4,386 |
Current portion of long-term debt | (19) | (19) |
Long-term debt, net of current portion, Carrying Value | $ 4,338 | 4,328 |
Floating Rate Term Loan Facility, due through June 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 3.95% | |
Long-term debt, Principal | $ 1,751 | 1,760 |
Long-term debt, Unamortized Carrying Value Adjustments | (28) | (33) |
Long-term debt, Carrying Value | $ 1,723 | 1,727 |
Senior Notes due September 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 5.875% | |
Long-term debt, Principal | $ 1,500 | 1,500 |
Long-term debt, Unamortized Carrying Value Adjustments | (17) | (19) |
Long-term debt, Carrying Value | $ 1,483 | 1,481 |
Senior Notes due August 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 6.25% | |
Long-term debt, Principal | $ 1,150 | 1,150 |
Long-term debt, Unamortized Carrying Value Adjustments | (12) | (14) |
Long-term debt, Carrying Value | $ 1,138 | 1,136 |
Bank Loans, Due Through June 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 4.90% | |
Long-term debt, Principal | $ 12 | 0 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 12 | 0 |
Other Debt, due through December 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 4.54% | |
Long-term debt, Principal | $ 1 | 3 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
Long-term debt, Carrying Value | $ 1 | 3 |
Short term borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate | 4.19% | |
Short-term borrowings | $ 14 | 39 |
Long-term debt, Unamortized Carrying Value Adjustments | 0 | 0 |
current portion of long term debt [Member] | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 0 | $ 0 |
Debt - Principal Repayments (De
Debt - Principal Repayments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 |
Maturities of long-term debt outstanding | ||
Short-term borrowings and current portion of long-term debt due within one year | $ 33 | |
2 years | 18 | |
3 years | 1,716 | |
4 years | 1 | |
5 years | 1,152 | |
Thereafter | 1,508 | |
Total debt | $ 4,428 | $ 4,452 |
Debt - Additional Information (
Debt - Additional Information (Details) ¥ in Millions | Dec. 18, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019CNY (¥) | Apr. 30, 2019USD ($) | Mar. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Long-term debt, Principal | $ 4,395,000,000 | $ 4,394,000,000 | |||
Short–term borrowings | 14,000,000 | 39,000,000 | |||
Bank Loan Obligations [Member] | China [Member] | |||||
Debt Instrument [Line Items] | |||||
Short–term borrowings | ¥ | ¥ 97 | ||||
Floating Rate Term Loan Facility, due through June 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, Principal | $ 1,751,000,000 | $ 1,760,000,000 | |||
Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Debt term | 5 years | ||||
Debt due within one year | $ 18,000,000 | ||||
Short Term Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | $ 1,500,000,000 | ||||
Debt term | 1 year | ||||
Short Term Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.95% | ||||
Term Loan Increase Joinder Amendment [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | $ 775,000,000 | ||||
Quarterly amortization payment | 0.25% | ||||
Amended Secured Term Loan Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Revolving Credit Facility [Member] | ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | $ 1,000,000,000 | ||||
Revolving Credit Facility [Member] | ABL Revolver Facility, Amendment [Member] | |||||
Debt Instrument [Line Items] | |||||
Additional borrowing capacity | $ 500,000,000 | ||||
Revolving Credit Facility [Member] | Novelis Korea Revolving Facility [Member] | Foreign Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | $ 100,000,000 | ||||
Revolving Credit Facility [Member] | Novelis China Revolving Facility [Member] | Foreign Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 16,000,000 | ||||
ABL Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 759,000,000 | ||||
ABL Revolver [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding | $ 21,000,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation by Award [Line Items] | |||
Share-based compensation liability | $ 16 | $ 16 | |
2010 LTIP [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Total compensation expense | $ 6 | $ 12 | |
SARs [Member] | Hindalco SARs [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Number of SARs granted (in shares) | 3,475,995 | ||
Unrecognized compensation expense | $ 4 | $ 4 | |
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 6 months | ||
RSUs [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Number of RSUs granted (in shares) | 2,681,386 | ||
Cash payments to settle liabilities | $ 9 | $ 14 | |
Unrecognized compensation expense | $ 8 | 8 | |
Unrecognized compensation expense, weighted average period of recognition (years) | 1 year 6 months | ||
Cash [Member] | |||
Share-based Compensation by Award [Line Items] | |||
Cash payments to settle liabilities | $ 3 | $ 4 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Components of net periodic benefit cost for postretirement benefit plans | ||||
Net periodic benefit cost (A) | $ 8 | $ 8 | $ 15 | $ 16 |
Pension Benefit Plans [Member] | ||||
Components of net periodic benefit cost for postretirement benefit plans | ||||
Service cost | 10 | 10 | 20 | 20 |
Interest cost | 15 | 15 | 30 | 30 |
Expected return on assets | (18) | (16) | (36) | (32) |
Amortization — losses, net | 9 | 8 | 17 | 16 |
Net periodic benefit cost (A) | 16 | 17 | 31 | 34 |
Other Benefit Plans [member] | ||||
Components of net periodic benefit cost for postretirement benefit plans | ||||
Service cost | 3 | 2 | 6 | 4 |
Interest cost | 2 | 2 | 4 | 4 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization — losses, net | 0 | 1 | 0 | 2 |
Net periodic benefit cost (A) | $ 5 | $ 5 | $ 10 | $ 10 |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Employer Contributions to Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Contributions to employee benefit plans | ||||
Funded pension plans | $ 33 | $ 14 | $ 38 | $ 16 |
Unfunded pension plans | 3 | 3 | 5 | 6 |
Savings and defined contribution pension plans | 7 | 7 | 17 | 16 |
Total contributions | $ 43 | $ 24 | $ 60 | $ 38 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Additional Information (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Retirement Benefits [Abstract] | |
Expected long-term rate of return on plan assets | 5.50% |
Maximum amortization period of unfunded actuarial liability | 15 years |
Expected additional contribution to funded pension plan | $ 13 |
Expected additional contribution to unfunded pension plan | 7 |
Expected additional contribution to savings and defined contribution plans | $ 17 |
Currency Losses (Gains) - Inclu
Currency Losses (Gains) - Included in Other (Income) Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Currency (gains) losses included in other income expense | ||||
(Gain) loss on remeasurement of monetary assets and liabilities, net | $ (1) | $ 0 | $ (6) | $ (6) |
(Gain) loss recognized on balance sheet remeasurement currency exchange contracts, net | 2 | 0 | 8 | 6 |
Currency (gains) losses, net | $ 1 | $ 0 | $ 2 | $ 0 |
Currency Losses (Gains) - Inc_2
Currency Losses (Gains) - Included in AOCI (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Mar. 31, 2019 | |
Currency gains included in AOCI, net of tax and Non controlling interests | ||
Cumulative currency translation adjustment — beginning of period | $ (236) | $ (65) |
Effect of changes in exchange rates | (81) | 171 |
Cumulative currency translation adjustment — end of period | $ (317) | $ (236) |
Financial Instruments and Com_3
Financial Instruments and Commodity Contracts - Summary of Gross Fair Values of Financial Instruments and Commodity Contracts (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 |
Assets | ||
Derivative Assets, Current | $ 101 | $ 70 |
Derivative Asset, Noncurrent | 0 | 2 |
Liabilities | ||
Derivative Liabilities, Current | (102) | (87) |
Derivative Liabilities, Noncurrent | (16) | (7) |
Net Fair Value Assets/Liabilities | (17) | (22) |
Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 31 | 10 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (41) | (26) |
Derivative Liabilities, Noncurrent | (16) | (5) |
Net Fair Value Assets/Liabilities | (26) | (21) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Metal Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 28 | 6 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (5) | (10) |
Derivative Liabilities, Noncurrent | (1) | 0 |
Net Fair Value Assets/Liabilities | 22 | (4) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 3 | 4 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (31) | (15) |
Derivative Liabilities, Noncurrent | (9) | (1) |
Net Fair Value Assets/Liabilities | (37) | (12) |
Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | Energy Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 0 | 0 |
Derivative Asset, Noncurrent | 0 | 0 |
Liabilities | ||
Derivative Liabilities, Current | (5) | (1) |
Derivative Liabilities, Noncurrent | (6) | (4) |
Net Fair Value Assets/Liabilities | (11) | (5) |
Not Designated as Hedging Instrument [Member] | ||
Assets | ||
Derivative Assets, Current | 70 | 60 |
Derivative Asset, Noncurrent | 0 | 2 |
Liabilities | ||
Derivative Liabilities, Current | (61) | (61) |
Derivative Liabilities, Noncurrent | 0 | (2) |
Net Fair Value Assets/Liabilities | 9 | (1) |
Not Designated as Hedging Instrument [Member] | Metal Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 47 | 38 |
Derivative Asset, Noncurrent | 0 | 1 |
Liabilities | ||
Derivative Liabilities, Current | (46) | (34) |
Derivative Liabilities, Noncurrent | 0 | (1) |
Net Fair Value Assets/Liabilities | 1 | 4 |
Not Designated as Hedging Instrument [Member] | Currency Exchange Contracts [Member] | ||
Assets | ||
Derivative Assets, Current | 23 | 22 |
Derivative Asset, Noncurrent | 0 | 1 |
Liabilities | ||
Derivative Liabilities, Current | (15) | (27) |
Derivative Liabilities, Noncurrent | 0 | (1) |
Net Fair Value Assets/Liabilities | $ 8 | $ (5) |
Financial Instruments and Com_4
Financial Instruments and Commodity Contracts - Additional Information (Details) MWh in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019USD ($)gallonMMBTUMWh | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)gallonMMBTUMWh | Mar. 31, 2019USD ($)gallonMMBTUMWh | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Expected reclassification from AOCI to earnings | $ 2,000,000 | |||
Gain (loss) recognized excluded from assessment of effectiveness | $ 1,000,000 | $ 1,000,000 | ||
Aluminum Forward Purchase Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 2 years | |||
Aluminum Forward Sales Contracts [Member] | Not Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 1 year | |||
Aluminum Forward Sales Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 2 years | |||
Copper Forward Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 2 years | |||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 1,000,000 | ||
Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative notional amounts | 846,000,000 | 846,000,000 | $ 737,000,000 | |
Currency Exchange Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative notional amounts | 688,000,000 | 688,000,000 | 703,000,000 | |
Currency Exchange Contracts [Member] | Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative notional amounts | 0 | 0 | 0 | |
Electricity Swaps [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, liability (less than) | $ 5 | $ 5 | $ 5 | |
Notional amount (in MMBTU, mwh, gallons, and kt) | MWh | 1 | 1 | 1 | |
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative remaining maturity | 3 years | |||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |
Notional amount (in MMBTU, mwh, gallons, and kt) | MMBTU | 1,000,000 | 1,000,000 | 1,000,000 | |
Natural Gas Swaps [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, liability (less than) | $ 5,000,000 | $ 5,000,000 | $ 2,000,000 | |
Notional amount (in MMBTU, mwh, gallons, and kt) | MMBTU | 13,000,000 | 13,000,000 | 15,000,000 | |
Diesel Fuel Forward Contracts [Member] | Cash Flow Hedges [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair value of derivative, liability (less than) | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |
Notional amount (in MMBTU, mwh, gallons, and kt) | gallon | 6,000,000 | 6,000,000 | 8,000,000 | |
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative notional amounts | $ 0 | $ 0 | $ 0 |
Financial Instruments and Com_5
Financial Instruments and Commodity Contracts - Summary of Notional Amount (Details) - Metal Contracts [Member] - kt kt in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Long [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 44 | 0 |
Long [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 15 | |
Short [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 375 | 338 |
Short [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 387 | 353 |
Short [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional amount (in tons) | 32 |
Financial Instruments and Com_6
Financial Instruments and Commodity Contracts - Gain (Loss) Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | $ 21 | $ 8 | ||
Other Operating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Balance sheet remeasurement currency exchange contract losses | $ (2) | $ 0 | (8) | (6) |
Realized gains (losses), net | (1) | 13 | (8) | (1) |
Unrealized gains (losses) on other derivative instruments, net | 3 | 1 | 9 | (3) |
Total gain (loss) recognized | 0 | 14 | (7) | (10) |
Other Operating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | (2) | 14 | (9) | (10) |
Other Operating Income (Expense) [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | 2 | 0 | 2 | 0 |
Other Operating Income (Expense) [Member] | Metal Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | (2) | 10 | (4) | (6) |
Other Operating Income (Expense) [Member] | Currency Exchange Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | (2) | 1 | (8) | (9) |
Other Operating Income (Expense) [Member] | Energy Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain (loss) recognized | $ 2 | $ 3 | $ 3 | $ 5 |
Financial Instruments and Com_7
Financial Instruments and Commodity Contracts - Summary of the Impact on AOCI and Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 2 | $ 0 | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ (20) | $ 30 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 25 | (70) | ||
Cash Flow Hedges [Member] | Metal Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 28 | 29 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 76 | (36) | ||
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 2 | 0 | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (43) | 0 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (42) | (35) | ||
Cash Flow Hedges [Member] | Energy Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | ||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ (5) | $ 1 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (9) | $ 1 |
Financial Instruments and Com_8
Financial Instruments and Commodity Contracts - Gain (Loss) Reclassification (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Income tax (provision) benefit | $ (45) | $ (64) | $ (108) | $ (117) |
Net income | $ 123 | $ 116 | $ 250 | $ 253 |
Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 16 | 18 | 41 | -13 |
Income tax (provision) benefit | $ (4) | $ (6) | $ (10) | $ 2 |
Net income | $ 12 | $ 12 | $ 31 | $ (11) |
Cash Flow Hedges [Member] | Energy Contracts [Member] | Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | -1 | 0 | -2 | -1 |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | -1 | 0 | -1 | 0 |
Cash Flow Hedges [Member] | Metal Contracts [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 23 | 27 | 53 | 0 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 0 | -5 | -1 | -7 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | 0 | -1 | 0 | -1 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Net Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | -4 | -2 | -7 | -3 |
Cash Flow Hedges [Member] | Currency Exchange Contracts [Member] | Depreciation and Amortization [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income/(Expense) (Effective Portion) | -1 | -1 | -1 | -1 |
Financial Instruments and Com_9
Financial Instruments and Commodity Contracts - Gain (Loss) Reclassification Summarization (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | $ 2 | $ 0 | ||
Metal Contracts [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Metal Contracts [Member] | Net Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 23 | 27 | $ 53 | $ 0 |
Metal Contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | (1) | 0 | (1) | 0 |
Metal Contracts [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | 0 | 0 |
Metal Contracts [Member] | Depreciation and Amortization [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | 0 | 0 |
Metal Contracts [Member] | Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Energy Related Derivative [Member] | Net Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | (1) | 0 | (2) | (1) |
Energy Related Derivative [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Depreciation and Amortization [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | 0 | 0 |
Energy Related Derivative [Member] | Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | 0 | 0 | 0 |
Currency Exchange Contracts [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 2 | 0 | ||
Currency Exchange Contracts [Member] | Net Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | (4) | (2) | (7) | (3) |
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | ||
Currency Exchange Contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | (5) | (1) | (7) |
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | ||
Currency Exchange Contracts [Member] | Selling, General and Administrative Expenses [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | (1) | 0 | (1) |
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | ||
Currency Exchange Contracts [Member] | Depreciation and Amortization [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | (1) | (1) | (1) | (1) |
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | 0 | 0 | ||
Currency Exchange Contracts [Member] | Other Nonoperating Income (Expense) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from AOCI into earnings | 0 | $ 0 | 0 | $ 0 |
Amount excluded from effectiveness testing recognized in earnings based on changes in fair value | $ 2 | $ 2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Increase (Decrease) in Stockholders' Equity | |||||
Balance as of beginning of period | $ (261) | $ (483) | $ (430) | $ (506) | $ (261) |
Other comprehensive income (loss) before reclassifications | (94) | 19 | (58) | (164) | |
Amounts reclassified from AOCI, net | (16) | (6) | (5) | (19) | 25 |
Other comprehensive income, net of tax | (100) | 14 | (77) | (139) | |
Balance as of end of period | (277) | (583) | (416) | (583) | (416) |
Currency Translation [Member] | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance as of beginning of period | (65) | (231) | (182) | (236) | (65) |
Other comprehensive income (loss) before reclassifications | (86) | (1) | (81) | (118) | |
Amounts reclassified from AOCI, net | 0 | 0 | 0 | 0 | 0 |
Other comprehensive income, net of tax | (86) | (1) | (81) | (118) | |
Balance as of end of period | (65) | (317) | (183) | (317) | (183) |
Cash Flow Hedges [Member] | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance as of beginning of period | 31 | (8) | (21) | (22) | 31 |
Other comprehensive income (loss) before reclassifications | (13) | 21 | 20 | (51) | |
Amounts reclassified from AOCI, net | (3) | (12) | (12) | (31) | 11 |
Other comprehensive income, net of tax | (25) | 9 | (11) | (40) | |
Balance as of end of period | 28 | (33) | (12) | (33) | (12) |
Postretirement Benefit Plans [Member] | |||||
Increase (Decrease) in Stockholders' Equity | |||||
Balance as of beginning of period | (227) | (244) | (227) | (248) | (227) |
Other comprehensive income (loss) before reclassifications | 5 | (1) | 3 | 5 | |
Amounts reclassified from AOCI, net | (13) | 6 | 7 | 12 | 14 |
Other comprehensive income, net of tax | 11 | 6 | 15 | 19 | |
Balance as of end of period | $ (240) | $ (233) | $ (221) | $ (233) | $ (221) |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Assets and Liabilities on Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | $ 101 | $ 72 |
Derivative Asset, Master Netting Adjustment | (45) | (36) |
Derivative Asset | 56 | 36 |
Liabilities | (118) | (94) |
Derivative Liability, Master Netting Adjustment | 45 | 36 |
Derivative Liability | (73) | (58) |
Level 2 Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 101 | 72 |
Liabilities | (113) | (91) |
Level 2 Instruments [Member] | Aluminum Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 75 | 45 |
Liabilities | (52) | (45) |
Level 2 Instruments [Member] | Currency Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 26 | 27 |
Liabilities | (55) | (44) |
Level 2 Instruments [Member] | Energy Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | (6) | (2) |
Level 3 Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | (5) | (3) |
Level 3 Instruments [Member] | Energy Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | $ (5) | $ (3) |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Fair Value Activity for Level 3 Contracts (Details) $ in Millions | 6 Months Ended |
Sep. 30, 2019USD ($) | |
Level 3 Derivative Instruments [Member] | |
Reconciliation of fair value activity for Level 3 derivative contracts | |
Balance as of beginning of period | $ (3) |
Realized/unrealized gain included in earnings | 2 |
Settlements | (1) |
Balance as of end of period | (5) |
Accumulated Other Comprehensive Loss (AOCI) [Member] | |
Reconciliation of fair value activity for Level 3 derivative contracts | |
Realized/unrealized gain included in earnings | $ (3) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Mar. 31, 2019 |
Liabilities | ||
Total debt - third parties (excluding short term borrowings), carrying value | $ 4,357 | $ 4,347 |
Total debt - third parties (excluding short term borrowings), fair value | $ 4,582 | $ 4,472 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 3 Months Ended |
Sep. 30, 2019USD ($)$ / MWh | |
Electricity Swaps [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Premium over forward prices in nearby observable market (per megawatt hour) | 40 |
Actual swap settlement price (per megawatt hour) | 30 |
Derivative, Sensitivity Analysis, Change in Valuation per $1 per Megawatt Hour Change in Electricity Price | $ | $ 1,000,000 |
Extended Electricity Swaps [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Premium over forward prices in nearby observable market (per megawatt hour) | 2 |
Derivatives, unit per hour | $ | $ 1 |
Other Expense (Income), Net (De
Other Expense (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Currency gains, net | $ (1) | $ 0 | $ (2) | $ 0 |
Unrealized (gains) losses on change in fair value of derivative instruments, net | (3) | (1) | (9) | 3 |
(Gain) loss on change in fair value of other realized derivative instruments, net | 1 | (13) | 8 | 1 |
(Gain) loss on sale of assets, net | (1) | (1) | (2) | 2 |
Loss on Brazilian tax litigation, net | 1 | 1 | 1 | 1 |
Interest income | (3) | (2) | (6) | (5) |
Non-operating net periodic benefit cost | 8 | 8 | 15 | 16 |
Other, net | (2) | 2 | (3) | 5 |
Other (income) expenses, net | $ 2 | $ (6) | $ 6 | $ 23 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 27.00% | 36.00% |
Net deferred tax liability | $ (112) | |
Gross deferred tax assets | 1,100 | |
Valuation allowance | 744 | |
Decrease in unrecognized tax benefits | $ 5 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Sep. 30, 2019 | Mar. 31, 2019 |
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, noncurrent | $ 9,000,000 | |
Other long-term liabilities [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, noncurrent | 5,000,000 | |
Brazil [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, current | 37,000,000 | $ 44,000,000 |
Brazil [Member] | Accrued expenses and other current liabilities [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, current | 7,000,000 | |
Brazil [Member] | Other long-term liabilities [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies, noncurrent | 23,000,000 | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Range of possible loss | 0 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Range of possible loss | 75,000,000 | |
Restructuring Action | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | 7,000,000 | |
Undiscounted Environmental Clean-Up Costs | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | $ 2,000,000 |
Segment, Major Customer and M_3
Segment, Major Customer and Major Supplier Information - Additional Information (Details) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019countrysegmentplant | Sep. 30, 2019countrysegmentplant | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 4 | 4 |
Number of operating plants | 23 | 23 |
Number of plants with recycling operations | 12 | 12 |
Number of countries Company operates in | country | 9 | 9 |
North America [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 8 | 8 |
Number of fully dedicated recycling facilities | 2 | 2 |
Number of plants with recycling operations | 2 | 2 |
Number of countries Company operates in | country | 2 | 2 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 10 | 10 |
Number of fully dedicated recycling facilities | 2 | 2 |
Number of plants with recycling operations | 3 | 3 |
Number of countries Company operates in | country | 4 | 4 |
Asia [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 3 | 3 |
Number of plants with recycling operations | 2 | 2 |
Number of countries Company operates in | country | 2 | 2 |
South America [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of operating plants | 2 | 2 |
Segment, Major Customer and M_4
Segment, Major Customer and Major Supplier Information - Selected Segment Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | $ 768 | $ 768 | $ 792 | ||
Total assets | 9,577 | 9,577 | 9,563 | ||
Net sales | 2,851 | $ 3,136 | 5,776 | $ 6,233 | |
Depreciation and amortization | 88 | 86 | 176 | 172 | |
Income tax provision | 45 | 64 | 108 | 117 | |
Capital expenditures | 138 | 60 | 300 | 114 | |
Operating Segments [Member] | North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 3,261 | 3,261 | 2,918 | ||
Net sales | 1,070 | 1,212 | 2,186 | 2,333 | |
Depreciation and amortization | 38 | 37 | 76 | 74 | |
Income tax provision | 11 | 18 | 28 | 32 | |
Capital expenditures | 72 | 28 | 164 | 50 | |
Operating Segments [Member] | Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 468 | 468 | 478 | ||
Total assets | 2,893 | 2,893 | 2,872 | ||
Net sales | 808 | 863 | 1,606 | 1,731 | |
Depreciation and amortization | 28 | 29 | 57 | 56 | |
Income tax provision | (3) | 4 | 0 | 8 | |
Capital expenditures | 13 | 14 | 23 | 30 | |
Operating Segments [Member] | Asia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 300 | 300 | 314 | ||
Total assets | 1,589 | 1,589 | 1,717 | ||
Net sales | 481 | 525 | 995 | 1,075 | |
Depreciation and amortization | 15 | 16 | 31 | 33 | |
Income tax provision | 5 | 6 | 13 | 12 | |
Capital expenditures | 34 | 9 | 72 | 11 | |
Operating Segments [Member] | South America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 1,566 | 1,566 | 1,831 | ||
Net sales | 470 | 518 | 949 | 1,046 | |
Depreciation and amortization | 17 | 16 | 33 | 33 | |
Income tax provision | 28 | 33 | 55 | 57 | |
Capital expenditures | 19 | 11 | 38 | 21 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in and advances to non–consolidated affiliates | 0 | 0 | 0 | ||
Total assets | 268 | 268 | $ 225 | ||
Net sales | 22 | 18 | 40 | 48 | |
Depreciation and amortization | (10) | (12) | (21) | (24) | |
Income tax provision | 4 | 3 | 12 | 8 | |
Capital expenditures | 0 | (2) | 3 | 2 | |
Net sales-third party | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,851 | 3,136 | 5,776 | 6,233 | |
Net sales-third party | Operating Segments [Member] | North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,070 | 1,211 | 2,186 | 2,332 | |
Net sales-third party | Operating Segments [Member] | Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 770 | 832 | 1,522 | 1,685 | |
Net sales-third party | Operating Segments [Member] | Asia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 478 | 517 | 990 | 1,059 | |
Net sales-third party | Operating Segments [Member] | South America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 457 | 512 | 924 | 1,030 | |
Net sales-third party | Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 76 | 64 | 154 | 127 | |
Net sales-intersegment | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Net sales-intersegment | Operating Segments [Member] | North America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 1 | 0 | 1 | |
Net sales-intersegment | Operating Segments [Member] | Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 38 | 31 | 84 | 46 | |
Net sales-intersegment | Operating Segments [Member] | Asia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 3 | 8 | 5 | 16 | |
Net sales-intersegment | Operating Segments [Member] | South America [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 13 | 6 | 25 | 16 | |
Net sales-intersegment | Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (54) | $ (46) | $ (114) | $ (79) |
Segment, Major Customer and M_5
Segment, Major Customer and Major Supplier Information - Reconciliation from Segment Income to Consolidated Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting [Abstract] | ||||
Net income attributable to our common shareholder | $ 123 | $ 116 | $ 250 | $ 253 |
Noncontrolling interest | 0 | 0 | 0 | 0 |
Income tax provision | 45 | 64 | 108 | 117 |
Depreciation and amortization | 88 | 86 | 176 | 172 |
Interest expense and amortization of debt issuance costs | 61 | 68 | 126 | 134 |
Adjustment to reconcile proportional consolidation | 14 | 15 | 29 | 31 |
Unrealized (gains) losses on change in fair value of derivative instruments, net | (3) | (1) | (9) | 3 |
Realized (gains) losses on derivative instruments not included in segment income | 1 | (1) | 3 | (1) |
Restructuring and impairment, net | 32 | 0 | 33 | 1 |
(Gain) loss on sale of assets | (1) | (1) | (2) | 2 |
Metal price lag | 5 | (1) | 7 | (34) |
Business acquisition and other integration related costs | 12 | 8 | 29 | 10 |
Other costs, net | (3) | 2 | (4) | 1 |
Total of reportable segments | $ 374 | $ 355 | $ 746 | $ 689 |
Segment, Major Customer and M_6
Segment, Major Customer and Major Supplier Information - Income from Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ 374 | $ 355 | $ 746 | $ 689 |
Operating Segments [Member] | North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 171 | 151 | 341 | 270 |
Operating Segments [Member] | Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 60 | 59 | 113 | 122 |
Operating Segments [Member] | Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 46 | 47 | 99 | 102 |
Operating Segments [Member] | South America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ 97 | $ 98 | $ 193 | $ 195 |
Segment, Major Customer and M_7
Segment, Major Customer and Major Supplier Information - Net Sales by Value Stream (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,851 | $ 3,136 | $ 5,776 | $ 6,233 |
Can | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,591 | 1,651 | 3,178 | 3,340 |
Automotive | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 672 | 771 | 1,381 | 1,497 |
Specialty (and other) | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 588 | $ 714 | $ 1,217 | $ 1,396 |
Segment, Major Customer and M_8
Segment, Major Customer and Major Supplier Information - Information About Major Customers and Primary Supplier (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cost of Goods Sold [Member] | Rio Tinto Alcan [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 11.00% | 10.00% | 11.00% | 10.00% |
Ball [Member] | Net Sales [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 23.00% | 22.00% | 22.00% | 23.00% |
Ford [Member] | Net Sales [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 10.00% | 11.00% | 10.00% | 10.00% |